The African Development Bank (AfDB) has raised concerns over delays by the Kenya Electricity Transmission Company (Ketraco) to compensate families along the power line to Tanzania, hitting timely completion.
AfDB says Ketraco is yet to pay affected families KSh64.719 million ($486,426) to pave way for the completion of the line on the Kenyan side.
The bank made the disclosures in its project review for the 507.5-kilometre power line, saying Kenya’s Treasury, Ministry of Energy and Ketraco should speed up the compensation to complete the line by December 31, 2023.
The line with an intended transfer capacity of 2,000 megawatts will allow the two countries to share electricity mainly hydro-power and clean energy, and lower reliance on thermal plants for an affordable and steady supply.
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“The 400 kV transmission line portion from Isinya to Namanga Kenya-Tanzania border post is nearly complete apart from the stringing activities heavily slowed down due to the lack of adequate financial resources on the part of Ketraco for the compensation and resettlement of project affected persons,” AfDB said.
“Both the Development Objective and Implementation Progress are satisfactory although the completion and commissioning of the facilities are not expected until Quarter Four of 2023 due to the lack of adequate counterpart financing.”
These disclosures show that Ketraco had built 68 percent of the line by the end of last year.
The project whose cost is estimated at $309.26 million is financed by AfDB and the Japanese International Co-operation Agency.
The line will help the two countries reduce the need to go for coal plants that are widely seen as a way of meeting the anticipated demand rise in the two economies, notably Kenya.