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25 April 2006 - Aggreko has won a contract with Kenya Electricity Generating Company Ltd (KenGen) for the provision of 100 MW temporary power in Kenya to support the national grid and ensure uninterrupted power for industry.
"With 100 MW in a single location, this will be the largest temporary power-plant Aggreko has delivered, and it is the third major contract Aggreko has won in East Africa in the last 12 months", said Rupert Soames, chief executive of Aggreko.
A prolonged drought is affecting many parts of East Africa and threatening a humanitarian disaster in addition to severe power shortages. The water level in many of the country's dams, which determines the amount of hydro-electric power that can be generated, is very low and without additional generating capacity KenGen would be unable to maintain electricity supplies. The 100 MW will account for about 10 per cent of the country's total generating capacity.
The contract was awarded to Aggreko following an open public tender which was advertised in the local press and the World Bank DG Market Online website. The tender was purchased by 16 companies, five of whom submitted their bids within the tender period. The opening of the bids was carried out in public in the presence of representatives of the bidders and the Emergency Power Supply Committee.
The 100 MW contract with KenGen is Aggreko's second utility contract in Kenya; under the first contract, awarded in 2000, Aggreko provided 45 MW at 11 kV at Embakasi in Nairobi for a period of ten months.
Equipment for the contract is being mobilised in phases from the company's regional headquarters in Jebel Ali, UAE; commissioning is expected to be completed by August 2006. The contract is estimated to be worth approximately $34m over a 12-month period. KenGen is wholly owned by the Kenyan Government, and is responsible for public power generation in Kenya.
"As well as threatening a humanitarian disaster in the region, the drought is causing power shortages in East Africa which could be severely disruptive to the long-term economic development of the region. This contract will help the Kenyan authorities to maintain power supplies, and thus support continued economic growth," Soames said.
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