Row over the solar power project The Sh17 billion solar power - TopicsExpress



          

Row over the solar power project The Sh17 billion solar power project planned to be set up in Kericho county may not take place following a standoff between the Kericho executive and the county assembly over the project. Members of the county assembly have accused Governor Paul Chepkwony of signing a Memorandum of Agreement with the UK based investor, Bluetechs UK Group Ltd without involving the assembly. Speaker Japheth Kiptergech Mutai and majority leader Daniel Rono said the MCAs said the decision to put up the solar project is illegal as it contravenes the County Government’s Act that requires public participation. “The assembly was completely kept in the dark until we were given the MOA that was signed the other day to look at. No MCA had seen it,” Mutai said. Speaking to the press at the assembly last week, the speaker said the assembly has not approved any regulations on the project. Mutai said any grant or public-private partnership must first be approved by the assembly. He accused the governor of running a one-man show in the project. Mutai said any grants put in the budget must be subjected to the approval of the assembly and the money to be spent in the project must be accounted for properly. Yesterday, while at a harambee in aid of Kapngetuny Secondary School in Kapsaos ward in Kericho county, Chepkwony accused Mutai of playing politics. Chepkwony cautioned the speaker and the MCAs against politicising the matter as it may scare away investors coming to the county. He called for dialogue between the executive and the assembly to resolve the stalemate. “The investor was to give us Sh17 billion. If the investor goes away, where will we get the money to fund the solar project? We want to work with the investor to generate power for use and sell the excess power to the Kenya Power Company so as to generate income,” the governor said. Chepkwony was accompanied by Council of Governors chairman Isaac Rutto, who is also the Bomet Governor. Chepkwony said the project will make Sh153 million in profits annually, which will be shared between the county and Bluetechs Company. He said according to the agreement, the investor will manage the project for 25 years before reverting it back to the county. The project, which is expected to produce 100 Megawatts of electricity in Soin ward in Kericho West sub-county. In January, Governor Chepkwony and Bluetechs UK Groups Ltd MD Mathialagan Veerasami signed the MOA at Kericho’s Tea Hotel. The first phase of the project was expected to start in March and was set to generate 10 Megawatts of electricity while the second phase kicks-off in June and will produce 2 Megawatts of power. In the partnership, the UK based investor will give the bulk of funding, 70 per cent of the total cost of the project while Kericho County will contribute 30 per cent of funds which according to the Majority Leader translates to Shs. 3 billion. On his part the Majority Leader said the MOA was not binding and that it has been forwarded to the assembly’s Finance committee to study it adding that the project will be rejected when it comes to the house if it will be found not to be viable. “The project has some financial implication. We do not know if the 500 acre piece of land donated by the county was part of the 10 per cent contribution by the county. This is one of the issues we are interested to know,” he said. Rono disclosed that the committee has calculated the 10 per cent contributions by the county to the project which he said runs the tune of more than Shs. 3 billion. The Kamasian Ward representative said the land set aside for the project is community land which the county is holding it in trust adding that there was need for public participation to bring them on board to give their input.
Posted on: Wed, 30 Apr 2014 21:04:55 +0000

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