- Kenya Power IPPs: Flawed contracts that Kenya Power signed with Independent Power Producers have been the cause of high cost of power in the country, as well as an avenue for loss of billions.
Kenya Power IPPs: Flawed contracts that Kenya Power signed with Independent Power Producers have been the cause of high cost of power in the country, as well as an avenue for loss of billions. This feature that was written by economic analyst Ephraim Njega reveals the list of companies and shareholders behind the these companies:
Imagine going to a bakery and buying a loaf of bread for Sh. 50. After paying the amount the Baker tells you wait a minute you still owe me money. How you ask surprised. The Baker informs you that you are supposed to pay him money for the flour used to bake the bread you have just purchased. What would you think if such a thing happened to you? How would you react?
Well, this is what has been happening to us with respect to Independent Power Producers (IPPs) producing thermal power. After paying them for the cost of power we have bought from them we are forced to pay them for the fuel used to produce the power we have just purchased. This is what the Ministry of Energy and Kenya Power officials signed us up for.
Why is it that this thing has been so normalised that nobody asks questions as to how such a thing can happen? Where are the accountants in this country? Why do we pay power producers money for fuel used to produce power and we have already paid them for the power? Aren’t these companies supposed to have costs? The IPP gravy train is a study in madness. Almost all the costs and risks of the IPPs are taken care of by power users. This robbery must be brought to an end.
So which companies are in bed with Kenya Power and who are their shareholders?
I have been doing some searching and I can reveal the shareholders of the firms behind these IPPs. The details for the first four are contained in a very detailed World Bank document. This is because the World Bank offered partial risk guarantees for the projects. The document is dated January 31, 2012. Details of the other firms are from their websites.
Thika Power Ltd
Thika Power Ltd. incorporated in Kenya is owned 90 percent by Melec PowerGen (BVI) a holding company incorporated in the British Virgin Islands (BVI). The remaining 10% is owned by Africa Energy Resources Pte. Ltd., a local partner, owned by Mr. Narendrabhai Bhailalbhai Patel.
Triumph Power Generating Company Ltd
Triumph Power Generating Company Ltd. incorporated in Kenya is owned by Mr. Abdirahman Haji Abass and his family-owned group of companies. The majority of the shareholding is held by family owned group companies such as BoardHolding, Interpel Investment Ltd., Tecaflex Ltd., and Southern Intertrade Ltd., together comprising 90% of the shares. The balance of the 10% of shares is owned equally by Mr. Abdirahman and Nihad Fauzi Abass.
Gulf Power Ltd
Gulf Power Ltd. is owned by Gulf Energy Ltd., (GEL) 50%, Multiple Hauliers Ltd. (MHL) 30%, Noora Power Ltd. (NPL) 10% and Unidentified shareholders 10%.
OrPower 4, incorporated in the Cayman Islands, was set up to own, construct, and operate the Olkaria III project including the Olkaria sub-project. It is 100% owned by Ormat Holding Corp. incorporated in the Cayman Islands which in turn is owned by Ormat Technologies Inc. of the US.
Tsavo Power is owned by Globeleq which is incorporated in the UK and owned by Colonial/Commonwealth Development Corporation (CDC) 70% and Norfund 30%. CDC is owned by the UK government. Norfund is owned and funded by the Norwegian Government. These hypocrites are producing dirty power in Kenya while preaching clean energy in Europe.
LTWP is owned by seven shareholders namely: Aldwych Turkana Limited (owned by Anergi, an African Power Company established through the joint venture between Africa Finance Consortium and Harith General Partners of South Africa); KP&P Africa B.V.; The Danish Climate Fund through Investment Fund for Developing Countries (IFU); KLP Norfund Investments of Norway; Vestas;
Finnfund- the Finnish Fund for Industrial Cooperation Ltd; and Sandpiper.
Rabai Power main shareholders are Burmeister & Wain Scandinavian Contractor A/S (BWSC) of Denmark (25.5%) and Aldwych International (Aldwych) of the United Kingdom (34.5%). Others are Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) (20%) and Investeringsfonden for Udviklingslande (IFU) (20%). FMO is owned by the Government of Netherlands while IFU is owned by the government of Denmark.
Iberafrica is owned by A.P. Moller Capital. A.P. Moller Capital is an affiliate of A.P. Moller Holding and part of the A.P. Moller Group. It is headquartered in Denmark. Rabai Power operates the 90MW thermal power plant located in Kilifi.