The government has on Friday signed a loan agreement with Japan for Olkaria 1, 2 and 3 Geothermal Power rehabilitation project amounting to Ksh 9.53 billion. Japan will also give a grant of Ksh 274.4 million for the purchase of patrol motor boats for Fisheries.
Speaking during the signing ceremony, Treasury Cabinet Secretary Henry Rotich said the rehabilitation of the power plants will enhance the current power producing gross capacity from 45Megawatts to 50.7 Megawatts.
“The completion will therefore enhance volume and security of electric power enabling sustainable economic growth in the country”, he said.
The CS further said the existing power plant has been experiencing the deterioration of its performance which is overworked since it was constructed over 37 years ago.
“considering that the project life of the originals design is 25 years, the plant is already overworked , has experienced normal wear and tear by its operation and also most of the equipment’s installed are no longer in production”, Rotich said.
He explained that the grant for procurement of motor boats will help secure the country’s fish resources and facilitate curbing of illegal fishing within the country’s maritime borders.
The CS said the government is keen on expanding economic and technical cooperation with the government of Japan saying they have been a partner since 1964 and so far have given financial and technical support to the country to a tune of Ksh 522.2 billion.
Rotich said the two projects once complete will contribute to the realization of vision 2030 and transform the county into a middle level income country. Ambassador of Japan to Kenya, Toshitsugu Uesawa said the signing of the agreement is a clear indication of very strong and close bilateral cooperation between the two countries.
He added that the support of the projects is in line with Kenya government implementation of the Big Four Agenda in the area of infrastructure.
KENGENs CEO Rebecca Miano said it is targeted that the project which will be able to develop at least 5,000 MW of new generation capaicity within a period of four years will be commissioned in November 2021.