Sunday, October 27, 2024 – President William Ruto’s economic advisor David Ndii has
jealously defended the controversial KETRACO deal with Adani Energy Solutions.
While responding to a social
media post, Ndii dismissed allegations that the government overspent in the
electricity deal recently signed by Energy Cabinet Secretary Opiyo Wandayi with
the Indian conglomerate.
He noted that the deal stood at
Ksh95 billion, an amount which he claimed included interests payable by the
government during the contract period.
He was clarifying the matter
after a Kenyan questioned the government’s controversial decision to spend such
an exorbitant amount of money on the construction of a 390 km transmission line
despite using only Ksh20 billion for a similar project in 2017.
“In 2017, just 6 years ago
KETRACO constructed a 482km line at just Ksh20 billion. Why are we
building a 390km line at Ksh95 billion, almost 5 times the cost? The project
should be around Ksh50 billion with kickbacks factored in,” argued the online
user.
But in a quick rejoinder, David
Ndii noted that the Ksh20 billion spent in 2017 for the connection of the 482km
power line was paid as a headstart for the project.
According to Ndii, the money
excluded wayleave and other essential expenditures payable by the government at
the end of the project.
The government advisor further
added that the value of the Kenyan Shilling against the dollar in 2017 also
played a significant role in lowering the budget cost for the construction of
electricity lines during the said period.
According to Ndii, in 2017, the
Kenyan shilling stood at Ksh100 against the United States currency, compared to
2024 when the local unit’s value marginally depreciated against the green
buck to retail at Ksh128.
“Ksh20 billion is EPC ie
contract price only. It does not include wayleave, finance costs, etc, borne by
the government. PPP is the total cost. Let’s do the math. The dollar was
Ksh100. USD200 million is Ksh26 billion today. PPP is a total cost,” Ndii
stated.
The Kenyan DAILY POST
