New Delhi: Power Grid Corporation of India Limited (POWERGRID), in partnership with Africa50, has signed a Public-Private Partnership (PPP) Project Agreement to develop major electricity transmission infrastructure in Kenya, marking a historic milestone as Africa’s first Independent Transmission Project (ITP). The project will be implemented under a 30-year concession framework and is expected to significantly enhance the reliability and resilience of Kenya’s power transmission network.
The agreement covers the development of the 400 kV Lessos–Loosuk transmission line and the 220 kV Kisumu–Kakamega–Musaga transmission system, two critical links aimed at strengthening power evacuation, improving grid stability, and supporting growing electricity demand in Kenya and the wider region.
High-Level Signing Ceremony
The signing ceremony took place in the presence of senior leadership from POWERGRID, including Dr. R. K. Tyagi, Chairman and Managing Director, Dr. Yatindra Dwivedi, Director (Personnel), and Mr. Sanjay Kumar Gupta, Chief Operating Officer (International Business). Their presence underscored the strategic importance of the project for both Kenya’s power sector and POWERGRID’s international growth ambitions.
A Historic Milestone for Africa and POWERGRID
This project is of particular significance as it represents Africa’s first Independent Transmission Project and also marks POWERGRID’s first project-financed international transmission venture. The initiative highlights the increasing role of private sector participation in transmission infrastructure and reflects growing confidence in PPP models for delivering complex, capital-intensive power projects across emerging markets.
Project Structure and Responsibilities
Under the terms of the agreement, a dedicated project company will be jointly established by Africa50 and POWERGRID to manage the full lifecycle of the transmission assets—from design and construction to operation and maintenance—over the 30-year concession period.
The Kenya Electricity Transmission Company Limited (KETRACO) will make availability-based payments linked to performance benchmarks, ensuring a strong focus on reliability and service quality. An Independent Expert, jointly appointed by the parties, will oversee project delivery and ensure transparency, technical compliance, and accountability.
Upon expiry of the concession, all project assets will be handed back to KETRACO in good condition and free of encumbrances, in line with international best practices.
Performance Guarantees and Local Content Commitment
To safeguard successful delivery, the private party will provide robust performance securities and maintain comprehensive insurance coverage throughout both construction and operational phases. The project will also strictly comply with local content requirements, ensuring meaningful participation by Kenyan professionals, contractors, and suppliers, thereby contributing to skills development and local economic growth.
Kenya’s Growing Transmission Investment Needs
KETRACO Acting Managing Director Eng. Kipkemoi Kibias noted that Kenya plans to develop an additional 8,000 kilometers of transmission lines over the next 20 years, requiring approximately USD 5 billion in investment, or about USD 250 million annually. With public funding constraints, increased reliance on PPPs has become essential to bridge financing gaps and accelerate the delivery of critical transmission infrastructure needed to support national and regional development goals.
About POWERGRID:
POWERGRID, a Maharatna public sector enterprise, is the central transmission utility of India. The company is responsible for planning, developing, and maintaining a strong power transmission network across the country. POWERGRID plays a vital role in ensuring uninterrupted and reliable power transmission, supporting the nation’s energy transition and economic growth.
