INDIAN Infrastructure Firm Adani Group's proposed takeover of Kenya's Jomo Kenyatta International Airport (JKIA) through a Public Private Partnership has been met with more public criticism after new reports emerged.
A Court case has shed more light on the controversial multi-billion shilling deal, with claims that Adani, is not investing it's own funds, in the Kenyan International Airport.
Adani Airports Holdings, a subsidiary of the Adani Group, a multinational conglomerate, has proposed refurbishing the Kenyan airport for Ksh 242.1 billion.
In the PPP deal, Adani proposes to operate JKIA under a 30-year concession, during which the Indian firm would pay the Kenya Airports Authority, KAA, a fixed annual fee.
According to the Petitioner, Adani will not be investing the Ksh 241 Billion from their accounts but instead will be using the JKIA airport’s assets as collateral to secure loans.
The legal battle sheds light on significant concerns regarding transparency, public interests, and the potential ramifications for the Kenyan economy.
According to the lawsuit, the Kenyan government will hand over JKIA’s title deed to Adani and is expected to be a Guarantor to the said loans.
In the JKIA takeover bid proposal from Adani Group, the Indian Company will pay sh 6.4 Billion annually to the Kenyan Government.
Adani Group, claims it will raise this money through Fees the company will charge the Kenyan Airport, JKIA, users.
The company estimated it's first JKIA Control year revenue at $163 million (KSh 21.3 billion). Out of the revenue, $47 million (KSh 6.2 billion) will go to the Kenyan government.
Adani Group proposed a revenue estimate of $290 million (KSh 37.9 billion), out of which $52 million (KSh 6.8 billion) will go to the government in 2030.
According to the documents, Adani Group offers to pay KAA Sh6 billion per year for the first five years, with the fee rising to Sh6.7 billion by 2035 and climbing further in subsequent years.
By the 30th year of the deal, Adani Group projects the annual concession fee to reach Sh9.8 billion.
Other revenue estimates include KSh 96.8 billion in 2045 and KSh 157 billion in 2054, earning Kenya between KSh 9 and KSh 10 billion in the respective years.
ADANI - KETRACO DEAL.
Kenya has inked a Public Private Partnerships (PPP) deal with Indian firm Adani Holdings Limited to develop Electricity Transmission infrastructure.
Energy Cabinet Secretary Opiyo Wandayi announced that the Kenya Electricity Transmission Company Limited (KETRACO) and Adani’s subsidiary-Adani Energy Solutions Limited have signed a Ksh95.68 billion Project Agreement.
According to the CS, Adani Energy Solutions will manage the Kenyan transmission line for 30 years, to ensure long-term sustainability and efficiency, and thereafter transfer the project and all its assets to KETRACO.
“I am pleased to announce the successful signing of the Project Agreement between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited (the Project Company) on Wednesday 9th October 2024,” CS Opiyo Wandayi said.
“The signing of this agreement marks the conclusion of a long-negotiated process that has been ongoing for the past 4 months.” the Energy Ministry added.
Adani Energy Solutions will raise all the funding in the form of debt and equity that will be repaid over the 30- year period of the project agreement, as part of this infrastructure development.
TRANSMISSION LINES ADANI WILL DEVELOP.
220kV Rongai-Keringet-Chemosit Line: Covering 99.98 km, this line will include substations at Rongai, Keringet, and Chemosit.
132kV Menengai-Ol Kalou-Rumuruti Line: An 89.88 km line with substations at Menengai, Ol Kalou, and Rumuruti.
400/220kV Substation at Lessos: Critical for supporting the 400KV transmission network and enhancing regional power stability.
132/33kV Substation at Thurdibuoro: Expanding the local distribution grid, providing much-needed power to Central and Southern Nyanza regions.
400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line: Spanning 208.73 km, this line will incude new substations at Gilgil, Thika, and Malaa, as well as substantial extensions at Konza