UK firm, Kenya sign deal to construct Sh425 billion High Grand Falls dam

The government has signed an agreement with a UK firm for the construction of the Sh425 billion High Grand Falls Dams in Kitui and Tharaka Nithi counties.

Irrigation PS Ephantus Kimotho said once completed, the dam will provide water volume exceeding 5,600 million cubic metres to irrigate 400,000 acres of land and generate up to 1,000 megawatts of hydropower.

“This is a multipurpose project which aims to achieve clean water supply, hydropower generation, flood control, irrigation development, eco-tourism, and aquaculture and improve livelihoods in the region and the country,” the PS said.

He spoke during the signing ceremony at Maji House in Nairobi.

The agreement that was signed between the National Irrigation Authority (NIA) and British constructor-GBM Consortium Limited.

Kimotho explained that the High Grand Falls Dam is one of the 100 mega dams earmarked for implementation by the government.

This is a privately initiated proposal under the public-private partnership basis, to be built at the confluence of River Mutonga and River Tana, just after the Seven Folks cascade project. The main reservoir will cover an area of more than 165 square kilometres.

“The British contractor will fund, design, build, own and operate the project for several years to recover their costs, meaning the Kenyan government isn’t paying a penny in the PPP arrangement,” Kimotho said.

He said the estimated Sh425 billion dam will not only be Africa’s second largest fresh water dam after the Aswan dam in Egypt built along River Nile, but also the single biggest government undertaking, costing more than the standard gauge railway.

According to the agreement, the British construction firm will undertake final project studies and designs before evaluation and determination by the PPP Committee on award, financial close and concession agreement for actual implementation of the project. 

The contractor will set up base at the project area in Kitui and Tharaka Nithi counties and begin preparations including feasibility studies.

The Project Development Agreement (PDA) further indicated that ground mapping and geological drilling, technical financial and economic feasibility, and other analysis to determine the actual scope of works for the dam should be concluded within six months.

The PS urged the contractor to move with speed and ensure they conclude the project preparations within the stipulated timeline.

The British High Commission in Nairobi said in a statement that the project is envisaged to include both a power purchase agreement for clean energy and a water purchase agreement for agricultural irrigation.

These new, clean and green investments will become flagship projects of the UK-Kenya Strategic Partnership – an ambitious five-year agreement that is unlocking mutual benefits for the UK and Kenya.

“The High Grand Falls Dam, which will generate a gigawatt of renewable power and provide an area over twice the size of the Maasai Mara with drought-combating irrigation solutions," the statement read.

The signing ceremony was witnessed by the UK Trade envoy to Kenya Theo Clarke and top government officials including Principal secretaries  Kimotho (Irrigation) and Abubakar Hassan Abubakar (Trade and Investments).