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Tag: Adani Group

  • Raila faces backlash over Adani deals

    Raila faces backlash over Adani deals

    Azimio la Umoja One Kenya Coalition leader Raila Odinga has come under heavy criticism over his support on the controversial Adani-energy deal.

    Businessman and Philanthropist Enock Opara opposed the former Prime Minister’s remarks regarding the Indian based multinational conglomerate involvement in Kenya’s critical infrastructure projects such as the Jomo Kenyatta International Airport (JKIA) and the energy sector.

    Mr. Opara opposed Odinga’s declaration supporting the Adani deals arguing they do not represent the country’s long-term interests.

    “While Odinga has cited the company’s capacity based on its record in Gujarat and Mumbai, we must take into account the larger implications of such partnerships for Kenya’s long-term interests,” he said.

    Transparency and Accountability

    He opined the Adani Group has faced multiple allegations of environmental violations and monopolistic practices in other regions noting that entering into such agreements with the entity poses a serious risk to ‘Kenya’s economic independence and the transparent governance of its public resources.’

    He added, “We must prioritize partners with proven, clean records and a commitment to accountability and environmental sustainability.”

    Protecting National Sovereignty

    The takeover, which has sparked protests amongst Kenyans on Social media, will see mega infrastructure projects like those at JKIA handed over to conglomerates with questionable histories.

    He said that allowing an external corporation, especially one with controversies surrounding it, to take control of these critical sectors could compromise our strategic interests.

    “Kenya’s airports and energy projects are vital to our national security, sovereignty, and economy,” said Enock Opara.

    Commitment to Sustainable and Transparent Partnerships

    The businessman called for a reassessment of the involvement of the Adani Group in these projects that are aligned to our values of transparency, sustainability, and national growth and not those that bring with them a cloud of controversy.

    “Kenya needs to explore partnerships with companies that demonstrate an unwavering commitment to environmental protection, sustainable development, and responsible corporate governance,” Mr. Opara said.

    “This is not just about the completion of mega-projects but also ensuring they are developed with the long-term welfare of the country in mind.”

  • Kenya inks Ksh 95.7B power deal with Adani Group

    Kenya inks Ksh 95.7B power deal with Adani Group

    Adani Energy Solutions will revamp and expand Kenya’s energy transmission network in a 30-year deal valued at Ksh 95.7 billion.

    Energy cabinet secretary Opiyo Wandayi says the pact was signed on Wednesday this week, marking the end of a four-month marathon negotiations.

    The company is part of the Adani Group of India which has initiated a private tender to expand and run the Jomo Kenyatta International Airport (JKIA) under a 30-year build-own transfer model.

    In a statement issued by the Ministry of Energy on Friday afternoon, Adani Energy Solutions will raise all the funding in the form of debt and equity that will be repaid over the 30 years of the project agreement, as part of this infrastructure development.

    The statement signed by Energy Cabinet Secretary Opiyo Wandayi further says the agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya.

    Under the pact, Adani will fund, develop and manage the 400kV Gilgil-Thika-Malaa-Konza Line:Spanning 208.73 km.

    The project will include the construction of new substations at Gilgil, Thika, and Malaa, as well as substantial extensions at Konza. Adani Energy Solution will further develop the 220kV Rongai-Keringet-Chemosit Line with coverage of 100 km among other projects.

    The Kenya Energy Transmission Company will be the project manager. The government says negotiation for the deal has been ongoing for the last four months.

    The company is part of the Adani Group of India, which has also proposed to fund, construct and manage the Jomo Kenyatta International Airport through a 30-year concession. The deal has sparked a major legal and political storm due to the nature of the agreement.

  • IEK faults Adani’s JKIA lease proposals, calls for transparency

    IEK faults Adani’s JKIA lease proposals, calls for transparency

    The Institution of Engineers of Kenya (IEK) has discredited some of the proposals by Adani Airport Holdings in its quest to lease the Jomo Kenyatta International Airport from the government.

    IEK has termed some of the proposals as not an immediate priority for the aerodrome which currently handles 10 million travelers, and is projected to hit 23 million during the proposed 30 years lease period to 2054.

    “While external expertise and investment can be beneficial, it is essential to evaluate whether the involvement of external parties is necessary for all aspects of modernization. Local engineers and companies could handle many technical aspects, ensuring that the knowledge and benefits remain within the country proposes to modernize the airport using a 3-phased approach,” said Shammah Kiteme, IEK President.

    In its proposal, the Indian firm targets to modernize JKIA in three phases, 2024-2028, 2029-2035 and 2046-2054.

    The first phase will cover construction of a new terminal with a capacity of 8 million travelers and Aprons Taxiways, refurbishment of current terminals, a 4 by 4 lane at the airport to simplify linking the two terminals and Construction of a grade car park, utility block and a City Side Development (CSD), consisting of many hotel and Construction of a grade car park, utility block and a City Side Development (CSD), consisting of many hotel.

    “The proposal seems to mainly focus on the City Side Development (CSD). There is much focus on the setting aside of 30 acres for the CSD. This will not solve the immediate issues facing the airport, but rather tap into the opportunities that should follow the growth and expansion of the airport,” says Kiteme.

    “The construction of hotels and malls is set to start almost immediately after the lease is signed, and this is not a priority,” he adds.

    The firm also target among other things improve current taxiways, construct a remote aircraft parking stands, expand main terminal building to handle 8 million passengers , construct a contact and remote aircraft stands and equip the airside facility with a CAT I system.

    IEK has also pointed out the exclusion a new runway at JKIA during the three decade Adani Group will be in charge of the facility.

    “The proposal on provision of ILS CAT-I facilities in 2046 is unfortunate. JKIA currently has a CAT-1 ILS, and improving this to CAT II or to CAT III would be more desirable,” notes Kiteme.

    IEK now calls for the government for a more inclusive and transparent approach to the modernization of JKIA and other airport facilities.

    The institute further says there should be more transparency in deal including assessment of revenue JKIA earns and what the firm will retain and involvement of local engineers in the projects.

  • Aviation workers oppose JKIA private lease plans

    Aviation workers oppose JKIA private lease plans

    The Kenya Aviation Workers Union (KAWU) has voiced its opposotion to the proposal by the Adani Airport Holdings to take over management of the Jomo Kenyatta International Airport.

    KAWU Secretary General Moss Ndiema has said the Kenya Airports Authority (KAA) has not yet conducted proper public participation on the proposal by the Indian conglomerate to acquire a 30 year concession period which includes a new runway, terminal and refurbish existing infrastructure at the aerodrome.

    “We have never been  involved as a union and as representatives of the workers,” said Ndiema.

    According to Prime Cabinet Secretary Musalia Mudavadi, Adani Airport Holdings submitted a Privately Initiated Proposal as per the Public Private Partnership Act in March this year, with the proposals currently being scrutinized.

    JKIA which was constructed in 1978 has outpaced its capacity of 7.5 million passengers annually to the current 8.6 million.

    The government has been considering a PPP model to aid in the construction of the facility which is projected to handle at least 30 million passengers annually within the next three decades.

    “The proposed expansion of JKIA is estimated to cost Ksh 260 billion ($2b), a sum that the government of Kenya is constrained to fund dur to the current tight fiscal situation,” said Mudavadi.

    According to KAWU, any deal on the acility should focus on putting up a new facility.

    “We don’t agree that KAA is unable to fund its own expansion,  moderniation and facelifting. That is a blunt lie. If you look at the latest valuation, KAA is worth Ksh 1.1 trillion. With that value, KAA can comfortably mobilize resources and conduct its own projets,” said Ndiema.

    KAWU further says the private management of the facility risks putting livelihoods of thousands of Kenyan workers at stake.

    “We will not support anything that interferes with job security. This will affect not less than 20,000 households. KAA alone we are looking at about 3000 employees,” he added.

    The union now threatens to paralize operations of the facility over the proposal.