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.