Kenya Electricity Generating Company PLC (KenGen) has clinched Sh5.8 billion contract to drill 12 geothermal wells in Ethiopia.
The deal with independent power producer Tulu Moye Geothermal Operations (TMGO) PLC also includes installing a water supply system and equipment.
KenGen will supply drilling materials and provide operation and maintenance services for both the drilling equipment and the water supply system.
KenGen Managing and CEO, Rebecca Miano, said this is the second and the company’s largest consultancy outside Kenya.
In February this year, KenGen won a contract to drill geothermal wells for the Ethiopian Electric Power (EEP) in Aluto.
The contract entails implementation of drilling rigs and accessories as well as rig operation and maintenance for drilling geothermal wells.
It is financed by the World Bank through a $76,8 million (Sh7.8 billion)loan to the Ethiopian government.
Phase I comprises the purchase of drilling rigs while Phase II entails the provision of drilling services.
KenGen is supplying about 30 per cent of the components of Phase II which translates into about $6.2 million (Sh620 million).
''We are excited our efforts bore fruit. Being fully aware of the task ahead of us, we have rolled our sleeves and are now all set and ready,'' Miano said.
KenGen, which has embarked on a diversification strategy, leverage its expertise in geothermal energy by offering commercial drilling services, geothermal consulting and other related services across Africa.
The organisation is also exploring expansion opportunities and will in the near future extend to oil and mining sectors in the region.
KenGen has a geothermal installed capacity of 698MW and is the leading geothermal power producer in Africa.
During the company’s last financial year, revenue generated from geothermal power plants increased from Sh16.1 billion in 2017 to Sh17.1 billion in 2018, which was a growth of six per cent.
