By Jackson Okoth
Kenya’s electricity supply is set to receive a major boost and likely cut energy costs. This is when piping work on the 280 MW geothermal plants at Olkaria is complete.
A contract has been signed between KenGen with Chinese firm Sinopec International Petroleum Service Corporation for installation of steam pipelines, separators and steam field control, systems-to deliver steam from geothermal wells to Olkaria 1 unit 4&6 and Olkaria 4 power plants, each with a capacity of 140 megawatts.
“We expect the piping work on the entire 280 MW project to be complete by early March, 2014. This plant will provide power that is clean and cheaper than that produced from coal or nuclear,” said Huang Guo, Deputy Director- Sinopec International.
Construction work begun in December 2012 and the total piping system installation is over 40 kilometres and includes various pipe sizes which range up to 42 inches in diameter.
Wells for producing steam for the project have already been successfully drilled, having been funded by the Kenya Government. There are 57 wells with a steam harvest able to generate 380 MW.
Other major contracts on the 280 MW Geothermal project are construction of the power plant, being undertaken by a consortium of Hyundai of Korea and Toyota Tshusho of Japan at a cost of $394, which was signed in November 2011.
There is the construction of transmission lines and sub stations by KEC International of India signed in December 2011 at a cost of $26 million. The overall project management is being carried out by Sinclair Mertz of New Zealand at a cost of $19 million. In total, the amount of cash committed to the 280 mw geothermal project is $ 580 million.
Available figures indicate that only 200MW of geothermal power has been exploited out of a potential of about 7000 MW. Kenya plans to develop 5000 MW of Geothermal; power by 2030, requiring at least $ 18 billion.
unfair labour practices
An unpredictable weather condition resulting in recurrent reductions in hydro-power generation has informed the country’s power development strategy in order to minimise dependence on hydro-power generation. Last month, the World Bank committed $1 billion (Sh86 billion) towards the development of Kenya’s energy infrastructure projects but raised concerns over the high cost of power, which has made Kenya an expensive investment destination.
The Bretton Woods institution called for increased focus on low cost sources of energy such as imports from Ethiopia and more investment in geothermal power whose generation is expected to guarantee, safe, reliable and affordable power in the long run.
There has been growing public outcry over the cost of power, which has continued to rise beyond the roof despite increased funding Kengen.
While allegations of unfair labour practices have emerged in recent weeks, Sinopec officials maintain that all is well in their operations in Kenya. For instance, all the unskilled labour is sourced locally through the SCC – Stakeholder Community Coordination, which is a community, based organisation of the local Maasai community. Workers are adequately compensated and treated the same as their Chinese counterparts.
“We have had issues of language and communication problems with the Chinese managers but that is being sorted out,” Venasio Musili Nzibe, a steel bender and fixer with Sinopec.
A spot check by Business Beat revealed that all employees on site were wearing protective equipment at all times while at work. The protective equipment worn is identical for both the Chinese and the local workers.
All the engineers, designers and specialty welders are Chinese. There is commendable transfer of skills (on job training) from the Chinese to the locals in various fields like welding, design, crane operations, quality checking and control.
