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KPLC and Vision 2030 directorate gone bananas!!!
Rank: New-farer Joined: 6/22/2011 Posts: 30
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Another deal going wrong (I hope not). The reason for the World Bank withdrawal of guarantees to the Lake Turkana Wind Power (LTWP) project is valid. How can we pay for power we are not using. Kenyan technocrats are sleeping bwana!!! http://www.businessdaily...0/-/hkf5yqz/-/index.html
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Rank: Member Joined: 9/23/2011 Posts: 175 Location: Nairobi
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uzimalife wrote: Another deal going wrong (I hope not). The reason for the World Bank withdrawal of guarantees to the Lake Turkana Wind Power (LTWP) project is valid. How can we pay for power we are not using. Kenyan technocrats are sleeping bwana! http://www.businessdaily.../-/hkf5yqz/-/index.html
I don't undestand this, why would there be a problem absorbing that extra power from LTWP by the kenya power co. when we already have an installed capacity that might not even be enough during peak demand? Ok, our little capacity can take care of the demand even on peak demand afterall but with shida mingi and the power company is wondering why they should buy that extra power. But why are we importing from Ethiopia and will our vision 2030 be achieved na hako ka capacity kadogo hivyo? If we are going to achieve that vision 2030 dream we have to grow to some level of development and growth means more electricity consumption and we(oh! not we-the world bank) are killing some noble green power projects like this.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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This is another subotage by the WB. Others being the expansion of Msa road. Why do they keep doing this? We know that in the following years the amount of power that will be needed in this country will increase significantly if/when the steel plant and transportation of oil will commence. So can someone explain what argument the WB has on this because am not getting it. Simple economics dictates that increase in supply reduces cost. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: New-farer Joined: 6/22/2011 Posts: 30
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madammary wrote:uzimalife wrote: Another deal going wrong (I hope not). The reason for the World Bank withdrawal of guarantees to the Lake Turkana Wind Power (LTWP) project is valid. How can we pay for power we are not using. Kenyan technocrats are sleeping bwana! http://www.businessdaily.../-/hkf5yqz/-/index.html
I don't undestand this, why would there be a problem absorbing that extra power from LTWP by the kenya power co. when we already have an installed capacity that might not even be enough during peak demand? Ok, our little capacity can take care of the demand even on peak demand afterall but with shida mingi and the power company is wondering why they should buy that extra power. But why are we importing from Ethiopia and will our vision 2030 be achieved na hako ka capacity kadogo hivyo? If we are going to achieve that vision 2030 dream we have to grow to some level of development and growth means more electricity consumption and we(oh! not we-the world bank) are killing some noble green power projects like this. murchr wrote:
This is another subotage by the WB. Others being the expansion of Msa road. Why do they keep doing this?
We know that in the following years the amount of power that will be needed in this country will increase significantly if/when the steel plant and transportation of oil will commence. So can someone explain what argument the WB has on this because am not getting it.
Simple economics dictates that increase in supply reduces cost.
You can't blame World Bank for an honest judgement. Who will pay the unused power before the transmission line is complete. Even when running close to capacity, we cannot absorb the whole 300MW. The world bank is right, it should be done in phases, so that any hiccups can be dealt with. We all know that there will be inefficiencies in the system. In case of down time, LTWP will still get paid for lack of absorption. If world bank does not guarantee, who will bear the cost of risk. It becomes a financial risk for Kenyans. Look at it as a single project.
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Rank: Elder Joined: 12/11/2008 Posts: 2,306
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This is simply another case of crap from the WB. Why has it taken so long to discover that the contract has a problem. How many emergency diesel power producers will lose contracts and how much power do they supply to the grid? This is Msa road expansion all over again. Why do these guys take ages to make a simple decision. Bravo China! The only point I pick her is the one on phased implementation. Great men are not always wise, neither do the aged understand judgement...
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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Am shocked. How can a government in its right mind even think to sanction such an agreement. 70% of unused power??
These Lake Turkana guys can simply choose to delay the project and Kenyans will still pay for it.
Kenya we have a loooong way to go.
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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Somebody wants to prop up somebodys political image before he retires.
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Rank: Chief Joined: 1/3/2007 Posts: 18,136 Location: Nairobi
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Robinhood wrote:This is simply another case of crap from the WB. Why has it taken so long to discover that the contract has a problem. How many emergency diesel power producers will lose contracts and how much power do they supply to the grid? This is Msa road expansion all over again. Why do these guys take ages to make a simple decision. Bravo China!
The only point I pick her is the one on phased implementation. Better late than never. The major issue/question is HOW WILL IT BE TRANSPORTED TO WHERE IT IS NEEDED not that it is excess of requirements? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 11/5/2010 Posts: 131 Location: kenya
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Simple message to the world bank fools, we don't need you. We have a blueprint showing how much power we need and know that we'll absorb that capacity, not only the 300MW, we are working on much more than that from Geothermal in Olkaria and Menengai. If the worst comes to the worst we will shutdown the expensive IPPs starting with your Aggreko.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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We should amend our constitution so that we have a referendum on any offers or loan the govt. wants to procure from IMF and World Bank. One day we will wake up and find 'the whole camel in the tent' as Raila says...
BBI will solve it :)
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Rank: New-farer Joined: 12/31/2011 Posts: 90
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And why are we thinking of exploiting the whole of our geothermal potential if we can't even absorb an extra 300 Megawatts. Am i not getting something right here?
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Rank: Elder Joined: 12/4/2009 Posts: 10,703 Location: NAIROBI
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And when is KPLC announcing their full year results wamekaa sana Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 1/27/2011 Posts: 1,777
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Doesn't it say something that the World Bank would rather give guarantees to the expensive IPP's-the one's that use diesel for generation- than to LTWP?
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Rank: New-farer Joined: 6/22/2011 Posts: 30
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shygal wrote:And why are we thinking of exploiting the whole of our geothermal potential if we can't even absorb an extra 300 Megawatts. Am i not getting something right here? Its the structure of the LTWP deal. Read the article above..
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Rank: Member Joined: 11/21/2006 Posts: 608 Location: Ruiru
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Power purchase agreements are normally structured such that the power producer [LTWP] is paid for installed capacity and actual delivery to the distributor [KPLC]. However in this case WB had issues, coz of abrupt surge in capacity and actual power not reaching the consumer because the transmission lines will be completed far much later than the power station. IMHO, these are real issues. But given consumers will probably start reaping the benefits from yr 2030, what would be the problem if we planned to phase the project? Why build a mega project just for the sake of it? "..I am because we are. "― Ubuntu, Umtu,
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Glad to see that many guys are waking up to the nasty reality of these bretton woods institutions and also WTO. There are many examples out there e.g Bolivia revolt due to water bills after WB recommended to the govt to privatize the water firm and hike the bills, in Tz the WB recommended the medicine price to be raised during an AIDS epidemic, in Ecuador the WB's poverty reduction strategy was to increase the price of cooking gas etc... Recommended reading - confessions of an economic hitman by John Perkins, Shock doctrine - disaster capitalism by Naomi Klein, Joseph Stiglitz - The Price of Inequality plus "Of the 1%, by the 1%, for the 1%," an article for Vanity Fair and your own discerning research. http://y2u.be/DrynBzUpyag - many will be shocked by this video. http://y2u.be/olKOPrRqdH4 - Joseph Stiglitz - The Price of Inequality http://y2u.be/pA5bwYWvGtc - Confessions of an Economic Hitman http://www.naomiklein.org/shock-doctrine - Naomi Klein website And in KE you are looking at a potential VAT intro to essential foods...  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,136 Location: Nairobi
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mgeman wrote:Simple message to the world bank fools, we don't need you. We have a blueprint showing how much power we need and know that we'll absorb that capacity, not only the 300MW, we are working on much more than that from Geothermal in Olkaria and Menengai. If the worst comes to the worst we will shutdown the expensive IPPs starting with your Aggreko. OK. Now how will you get the electricity from the wind farm to where it is needed? By camel express? There are transmission lines from Olkaria to Nairobi (among other major towns) & thermal IPPs are located close to the urban areas and can feed into the grid. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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VituVingiSana wrote:mgeman wrote:Simple message to the world bank fools, we don't need you. We have a blueprint showing how much power we need and know that we'll absorb that capacity, not only the 300MW, we are working on much more than that from Geothermal in Olkaria and Menengai. If the worst comes to the worst we will shutdown the expensive IPPs starting with your Aggreko. OK. Now how will you get the electricity from the wind farm to where it is needed? By camel express? There are transmission lines from Olkaria to Nairobi (among other major towns) & thermal IPPs are located close to the urban areas and can feed into the grid. @VVS Have you not heard that we shall be getting power from Ethiopia, where will this be passing though? How long will it take the wind farm to set up? isn't that time enough for Ketraco to install the required transmission. This is just another sabotage. Its not the first time. Just track every WB project...issues kibao. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 1/27/2011 Posts: 1,777
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murchr wrote:VituVingiSana wrote:mgeman wrote:Simple message to the world bank fools, we don't need you. We have a blueprint showing how much power we need and know that we'll absorb that capacity, not only the 300MW, we are working on much more than that from Geothermal in Olkaria and Menengai. If the worst comes to the worst we will shutdown the expensive IPPs starting with your Aggreko. OK. Now how will you get the electricity from the wind farm to where it is needed? By camel express? There are transmission lines from Olkaria to Nairobi (among other major towns) & thermal IPPs are located close to the urban areas and can feed into the grid. @VVS Have you not heard that we shall be getting power from Ethiopia, where will this be passing though? How long will it take the wind farm to set up? isn't that time enough for Ketraco to install the required transmission. This is just another sabotage. Its not the first time. Just track every WB project...issues kibao. Yes, some 400 Megawatts to be imported from Ethiopia plus a transmission powerline and the work is to start in 2013.This other 300 Megawatt LTWP project is long overdue and some people are still squabbling about it. Are the priorities right here?
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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murchr wrote:How long will it take the wind farm to set up? isn't that time enough for Ketraco to install the required transmission. The WB believes the transmission lines from the area will not be ready by the time the farm is complete! Its a valid concern... Why is GOK rejecting the phased implementation plan?? Why does GOK want Kenyans to pay for power that is not connected to the national grid?? Mark 12:29
Deuteronomy 4:16
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