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Adani’s company signs a new deal in Kenya, this old project of the group is stuck in trouble

by Aaryan Srivastav
October 11, 2024
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Adani Energy Solutions Limited, a group company led by Indian billionaire Gautam Adani, has signed a big deal in Kenya. This deal is also important because another project of Adani Group in Kenya is facing problems. This project is of Kenya’s airport.

what is the new deal

The Adani Group company has signed an agreement to build and operate major power transmission lines for 30 years. Kenya’s Energy Department Cabinet Secretary Opio Wandayi gave this information. This deal has been done with Kenya Electricity Transmission Company Limited (Ketraco).

What did Opio Vandayi say?

Vandayi said – this agreement marks the beginning of a significant initiative to develop, finance, construct, operate and maintain major power transmission lines and substations across Kenya. Kenya continues to face frequent power outages and these projects awarded to Adani are aimed at improving the country’s transmission infrastructure to ensure reliable power supply. He said that under this infrastructure development, the project company (AESL) will raise all the financing in the form of debt and equity, which will be repaid over the 30 year period of the project agreement.

Which project is the problem?

There is opposition to the agreement made by the Kenyan government with the Adani Group for the airport. Jomo Kenyatta International Airport will be modernized and an additional runway and terminal will be constructed under a construction and operation agreement with Adani Group, the Government of Kenya. Under the agreement the group will operate the airport for 30 years. There is opposition to this at the local level. Recently the unions had gone on strike regarding this matter. Due to this there were problems in airline services.

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