Country Kenya Status In development Primary fuel Coal | Location Lamu Commission date 2020 (Expected) Owner Amu Power Company | |
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Nameplate capacity 1,050 megawatts (1,410,000 hp) | ||
The proposed Lamu Coal Power Station is a potential 1,050 megawatts (1,410,000 hp) coal-fired thermal power station in Kenya. The proposed plant would be developed on 865 acres of land and feature a 210 meter tall smoke stack, which would become East Africa's tallest structure.
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Kenya national government and media have been positive about the economic benefits from the coal plant activity, and the promised 1000-2000 jobs created.
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.
Location
The power station would be located on 975.4 acres (395 ha) in the Kwasasi area, about 21 kilometres (13 mi) north of the town of Lamu in Lamu County, along Kenya's Indian Ocean coast. This is approximately 250 kilometres (160 mi), by air, north-east of Mombasa. The driving distance is approximately 300 kilometres (190 mi).
Overview
Construction was 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), 400 kilovolt 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. In September 2016, Kenyan print media indicated that construction is expected to begin in the fourth quarter of 2016 and last 42 months.
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. Community, Kenyan and international 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. The population wants cleaner, more progressive renewable energy.
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:
Two of the losing bidders challenged the award in court. An arbitration tribunal, however, upheld the award in January 2015.
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.
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".
In July 2016, Standard Bank of South Africa and ICBC agreed to jointly fund the $300 million that was needed to close the deal.