KenGen clinches Ksh.5.8B deal to drill Ethiopia geothermal wells

Kenya Electricity Generating Company PLC (KenGen) has clinched a Ksh 5.8 billion contract to drill 12 geothermal wells in Ethiopia.

The contract with Ethiopia’s independent power producer Tulu Moye Geothermal Operations (TMGO) PLC will also include installing a water supply system and equipment.

KenGen will supply drilling materials and provide operation and maintenance services for both the drilling equipment and the water supply system.

“This project entailed intense negotiations and planning. We are excited our efforts bore fruit. Being fully aware of the task ahead of us, we have rolled our sleeves and are now all set and ready,” the KenGen MD said.

KenGen boss Rebecca Miano said the project is the second and the company’s largest consultancy outside Kenya.

In February this year, KenGen won a contract to drill geothermal wells for the Ethiopian Electric Power (EEP) in Aluto, Ethiopia.

The contract was for implementing drilling rigs and accessories as well as rig operation and maintenance for drilling geothermal wells.

The latest project is financed by the World Bank through a loan of $76,801,344 (about Ksh 7.6 billion) to the Ethiopian Government.

The Tulu Moye  project is to be implemented in two phases: Phase I will be the purchase of drilling rigs while Phase II entails the provision of drilling services.

KenGen is supplying about 30 percent of the components of Phase II which translates into about USD 6.2 million (about Ksh.620 million).

KenGen, has embarked on a diversification strategy. It leverages its expertise in geothermal energy by offering commercial drilling services, geothermal consulting and other related services across Africa.

The organization is also exploring expansion opportunities and will in the near future extend to oil and mining sectors in the region.

KenGen has invested in experts with considerable experience in geothermal exploration and drilling and will build the capacities of teams from Ethiopia who will be working on the project.