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East Africa’s leading electricity generator, Kenya Electricity Generating Company (KenGen) on Thursday announced it has clinched a 5.8 billion shillings ($49 billion) contract to drill 12 geothermal wells in Ethiopia.The contract with Ethiopia’s independent power producer Tulu Moye Geothermal Operations (TMGO) PLC will also include installing a water supply system and equipment.
KenGen will supply drilling materials and also provide operation and maintenance services for both the drilling equipment and the water supply system.
Speaking on Thursday about the multi-million dollar project, KenGen Managing and CEO, Rebecca Miano, said it was the second and the company’s largest consultancy outside Kenya.
In February this year, KenGen won a contract to drill geothermal wells for the Ethiopian Electric Power (EEP) in Aluto, Ethiopia.
The contract in Aluto is for the implementation of drilling rigs and accessories as well as rig operation and maintenance for drilling geothermal wells.
It is financed by the World Bank through a loan to the Ethiopian government to the tune of $76 million
The project is being implemented in two phases.
Phase I comprises the purchase of drilling rigs while Phase II entails the provision of drilling services.
KenGen is supplying about 30 percent of the components of Phase II which translates into about $6.2 million.
“This project entailed intense negotiations and planning. We are excited our efforts bore fruit. Being fully aware of the task ahead of us, we have rolled our sleeves and are now all set and ready,” KenGen Managing Director, Tulu Moye said in a statement issued in Nairobi.
KenGen, which has embarked on a diversification strategy, leverages its expertise in geothermal energy by offering commercial drilling services, geothermal consulting and other related services across Africa.
The organization is also exploring expansion opportunities and will in the near future extend to oil and mining sectors in the region.
Kenya is Africa’s number one geothermal energy producer and among top 10 in the world.The country has an estimated potential of 10,000MW along the Rift Valley. |
