Ndii Defends Adani Energy Deal
The controversy revolves around the Kenya Electricity Transmission Company (KETRACO) project, with critics alleging the government overspent on the agreement.
David Ndii, the Chairperson of the Presidential Council of Economic Advisors. Photo/The Star Kenya.
By Robert Mutasi
David Ndii, the Chairperson of the Presidential Council of Economic Advisors, has come out to defend the government in light of a public uproar over its recent deal with Adani Energy Solutions.
The controversy revolves around the Kenya Electricity Transmission Company (KETRACO) project, with critics alleging the government overspent on the agreement.
Responding to a query on social media on Saturday, Ndii dismissed claims that the deal, recently signed by Energy and Petroleum Cabinet Secretary Opiyo Wandayi, was overpriced.
An online user had compared the current project to a 2017 KETRACO project, arguing that the cost of constructing a 390-kilometer transmission line at Ksh95 billion was almost five times higher than the Ksh20 billion spent on a 482-kilometer line six years ago.
“In 2017, just six years ago, KETRACO constructed a 482km line at just Ksh20 billion. Why are we building a 390km line at Ksh95 billion, almost five times the cost? The project should be around Ksh50 billion with kickbacks factored in,” the online user stated.
In response, Ndii explained that the Ksh20 billion figure in the earlier project only covered the Engineering, Procurement, and Construction (EPC) costs, excluding critical expenses such as wayleave acquisition, financing costs, and other expenses borne by the government.
He clarified that the Public-Private Partnership (PPP) model, which governs the Adani deal, reflects the total cost of the project, unlike the 2017 contract.
“Ksh20 billion is EPC i.e., contract price only. It does not include wayleave, finance costs, etc., borne by the government. PPP is the total cost. Let’s do the math. The dollar was Ksh100. USD200 million is Ksh26 billion today. PPP is a total cost,” Ndii explained.
The KETRACO-Adani Energy Solutions deal, signed on October 11, grants Adani the responsibility to construct, operate, and maintain electricity transmission lines in Kenya for 30 years.
The project is expected to strengthen the country’s electricity grid and improve power distribution efficiency, but its cost has sparked heated debate.
Ndii’s clarification seeks to ease the concerns of those questioning the financial prudence of the deal.
The advisor emphasized that the differences in cost between past and current projects stem from varied financing models and additional project expenses, making direct comparisons misleading.
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