Kenya Power managing director Ben Chumo. PHOTO | FILE
Electricity
distributor Kenya Power has prepared a $2.17 billion (Sh219.1 billion)
budget for the implementation of capital intensive projects in the next
five years.
The utility firm, in its blueprint, states
that the funds will be used to adequately supply power to 10.8 million
customers by 2021, more than double the 4.8 million clients currently
connected to the national grid.
Kenya Power’s plan
covers five key projects — infrastructure development, network
modernisation, electricity loss reduction, resource realignment and
improving supply and service to customers.
“Although
this is a very ambitious and costly investment programme, it will go a
long way in sustaining the company’s growth and expansion agenda,” Kenya
Power managing director Ben Chumo notes in the strategy document.
“The
company is optimistic its profitability will increase with continued
sales and demand growth. This will arise from the accelerating growth of
the economy, massive infrastructural investments and a vibrant domestic
private sector.”
The power firm says it will source
the funds internally and borrow some from banks and multilateral
lenders, adding that the World Bank is currently conducting a study to
ascertain the sustainable levels of both options.
Kenya
Power says the study of “the company’s operations and finances” will be
completed by June next year and “will provide a clear definition on the
levels of borrowing and the components of the borrowed moneys.”
Some
of the highlights of the strategic plan include connecting 1.2 million
customers every year until 2021, including 251,000 of them through the
Last Mile project in the next two years.
The Nairobi
bourse-listed firm expects to install 52 new primary substations in the
period, 1,000 distribution substations and about 16,000 kilometres of
new power lines connecting them to the grid.
A total of
70 substations will be refurbished during the period. Other initiatives
include expanding the street lighting project, outsource meter reading,
acquire a debt collection and management module, and install 2.8
million smart meters to better capture power consumption.
The
utility firm plans to procure 2,725 megawatts power from 44 new power
stations, with coal being one of the main new sources of energy.
It
also plans expand its slum electrification, lay underground cables in
satellite towns as well as set up self-service kiosks as a substitute to
banking halls
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