Lamu Coal Power Station
| Lamu Coal Power Station (proposed) | |
|---|---|
  Proposed location of Lamu Coal Power Station in Kenya | |
| Country | Kenya |
| Location | Lamu |
| Coordinates | 02°17′28″S 40°51′20″E / 2.29111°S 40.85556°ECoordinates: 02°17′28″S 40°51′20″E / 2.29111°S 40.85556°E |
| Status | In development |
| Commission date | 2018 (Expected) |
| Owner(s) | Amu Power Company |
| Thermal power station | |
| Primary fuel | Coal |
| Power generation | |
| Nameplate capacity | 981 MW |
The proposed Lamu Coal Power Station is a potential 981.5 megawatt coal-fired thermal power station in Kenya, the largest economy in the East African Community. The proposed plant would be developed in 865 acres of land and feature a 210 meter tall smoke stack, which would become East Africa's tallest structure.[1][2][3]
Kenya national government and media have been positive about the economic benefits from the coal plant activity, and the promised 1000-2000 jobs created.[1][4]
However, community advocates and some local government officials expressed concern over whether the benefits would be well distributed, whether the jobs would really materialise, and the lack of discussion over possible negative effects from the project.[2]
Location
The power station would be located 865 acres of land at Manda Bay, Lamu County, on Kenya's coast, approximately 250 kilometres (160 mi), by air, northeast of Mombasa. The driving distance is approximately 300 kilometres (190 mi).[5]
Overview
Construction is expected to begin in September 2015 and last approximately 21 months. Once constructed, it will be the largest single power station in Kenya. The power generated will be transmitted to Nairobi, the country's capital, via a new 520 kilometres (320 mi), 400kV electricity transmission line. In the initial years, the station will utilize imported coal, mainly from South Africa, and later convert to locally sourced coal from the Mui Basin in Kitui County.[6]
Controversy
Community activists and some local officials have also raised the need for revenue sharing for the community, and what conditions would be set for the project to ensure it would benefit the host community, citing the fact that community members affected by the earlier oil infrastructure project known as Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor have not been compensated.[2] Community activists and one of the world's leading economists Joseph Stiglitz have raised serious concerns about the environmental and human health implications of the fossil fuel plant, instead arguing for cleaner, more progressive renewable energy.[7][8][9]
History
In January 2014, the Government of Kenya sourced for bids from private developers to build, own, and operate the power station. In September 2014, the development rights were awarded to a consortium of the following entities:[10]
- Gulf Energy - An independent Kenyan energy generating company
- Centum Investment Company Limited - A private equity firm, headquartered in Nairobi, with investments in Kenya and Uganda.
- Sichuan Electric Power Design and Consulting Company Limited (SEDC) - A subsidiary of Power Construction Corporation of China (PowerChina)
Two of the losing bidders challenged the award in court. An arbitration tribunal, however, upheld the award in January 2015.[11][12]
Developers and financing
The power station will be built using private funds on a build-own-operate model. The developers will own and operate the plant for 25 years from commissioning. The expected construction costs for the coal plant will be about US$2 billion (KES:180 billion). Of this, approximately US$500 million will be generated internally while the balance will be borrowed.[12][13]
Amu Power Company, a special purpose vehicle formed by the developers, will develop, own and operate the station as part of the "Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor".[14]
| No. | Name of Lender | Loan Amount (US$) | Percentage of Total |
|---|---|---|---|
| 1 | Amu Power Company[15] | 0.5 billion | 25.0 |
| 2 | Industrial and Commercial Bank of China[14] | 1.2 billion | 60.0 |
| 3 | Local Kenyan Banks[14] | 0.3 billion | 15.0 |
| Total | 2.0 billion | 100.00 | |
See also
References
- 1 2 Mbugua, James (11 April 2015). "Kenya: Planned Lamu Coal Plant Set to Transform County". The Star Newspaper via AllAfrica.com. Nairobi. Retrieved 28 January 2016.
- 1 2 3 Muthoni, Kamau (4 February 2015). "Lamu leaders set conditions to support Sh170billion coal power plant". The Standard (Kenya). Nairobi. Retrieved 28 January 2016.
- ↑ Kangethe, Kennedy (20 March 2014). "Kenya: Government Seeks Coal Power Plant Investors". Nairobi: 98.4 Capital FM via AllAfrica.com. Retrieved 24 January 2015.
- ↑ Otuki, Neville (5 February 2015). "Lamu Coal Plant Firms Pledge 1,000 New Jobs for Locals". Business Daily Africa. Nairobi. Retrieved 5 February 2015.
- ↑ GFC (28 January 2016). "Distance between Mombasa, Kenya and Lamu, Kenya". Globefeed.com (GFC). Retrieved 28 January 2016.
- ↑ Xinhua, . (24 January 2015). "Kenya To Kick Off Construction of 960MW Coal Plant". CoastWeek.Com Quoting Xinhua.
- ↑ Eunice Kilonzo, and Kalume Kazungu (12 July 2015). "Expert says coal plant bad for health". Daily Nation. Nairobi. Retrieved 28 January 2016.
- ↑ Heuler, Hilary (3 December 2014). "With New Kenyan Port, Lamu Fears Losing Traditions". Voice of America. Retrieved 28 January 2016.
- ↑ NYAN (6 August 2015). "US Multinationals Scooped Up Deals During Obama’s Visit To Kenya". New York Amsterdam News (NYAN). New York City. Retrieved 28 January 2016.
- ↑ Centum (1 September 2014). "A Consortium Led By Kenyan Companies; Gulf Energy Limited & Centum Investment Company Limited, Emerges As The Winning Bidder of The Mega Lamu Coal 1000MW Project". Centum Investment Company Limited (Centum). Retrieved 24 January 2015.
- ↑ Standard Reporter, and Reuters (15 January 2015). "Tribunal Backs Centum Consortium's KSh170 Billion Coal Power Plant Tender Win". The Standard (Kenya). Nairobi. Retrieved 24 January 2015.
- 1 2 Wasuna, Brian (14 January 2015). "Centum Wins KSh164 Billion Coal Power Plant Tender Case". Business Daily Africa. Nairobi. Retrieved 24 January 2015.
- ↑ Otieno, Jeff (28 March 2015). "Construction of Coal-Powered Plant To Begin In September". The EastAfrican. Nairobi. Retrieved 28 March 2015.
- 1 2 3 Otuki, Neville (8 June 2015). "Chinese Firm Signs KSh96 Billion Contract for Lamu Coal-Fired Electricity Plant". Business Daily Africa. Nairobi. Retrieved 22 June 2015.
- ↑ Otieno, Jeff (28 March 2015). "Construction of Coal-Powered Plant To Begin In September". The EastAfrican. Nairobi. Retrieved 22 June 2015.