POWERGRID and Africa50: Pioneering Africa’s first transmission PPP Project

Africa50 is an Investment Bank for Infrastructure in Africa that focuses on high-impact national and regional projects in the energy, transport, ICT and water sectors.

Table of Contents

POWERGRID and Africa50: Relevance for UPSC Exam

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POWERGRID and Africa50: Context

Recently, Power Grid Corporation of India Limited (POWERGRID) has signed a Joint Development Agreement with Africa50, to develop the Kenya Transmission Project on a public-private partnership (PPP) basis.
- It is first PPP mode transmission project in Kenya.
The signing of this agreement underscores POWERGRID and Africa50’s commitment to continue to dedicate resources to accelerate development activities on the project until financial close.

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POWERGRID and Africa50: Key Points

About: The project entails the development, financing, construction, and operation of the 400kV Lessos- Loosuk and 220kV Kisumu- Musaga transmission lines under a PPP framework.
Role of POWERGRID: It is one of the world’s leading electric transmission utility companies. POWERGRID will provide technical and operational know-how to the project.
Role of Africa50: It will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.

POWERGRID and Africa50: Significance

Once completed, the project will be the first Independent Power Transmission (IPT) in Kenya.
It will set a reference point in Africa as the first financing of transmission lines on a PPP basis.
This Project will also improve both the supply and reliability of power transmission in Western Kenya.
It will create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks- critical to bridging the continent’s electricity access gap.

Africa50: Key Points

About: Africa50 is an Investment Bank for Infrastructure in Africa that focuses on high-impact national and regional projects in the energy, transport, ICT and water sectors.
- Africa50 was established by African governments and the African Development Bank.
Mandate: Africa50 is an infrastructure investment platform that aims to help bridge Africa’s infrastructure funding gap and contributes to Africa’s economic growth by-
- Developing and investing in bankable infrastructure projects,
- Catalyzing public sector capital, and
- Mobilizing private sector funding, with differentiated financial returns and impact.
Partners: Africa50 currently has 31 shareholders, comprised of 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.