PRIVATE SECTOR INVESTMENT IN KENYA POWER SETOR私营部门的投资在肯尼亚电力部门.pptVIP

IPP PRICES The prices payable to IPPs in the PPAs are derived from competitive bidding process. For the Feed In Tariff Policy projects, the rates are set by Feed In Tariff Policy. * IPP PRICES The prices for unsolicited proposals are negotiated i.e. project costs, cost of funding are screened including the rate of return to be allowed and are, where applicable, compared with those of existing projects. * IPP PRICES The rate of return is guided by ERC’s Tariff Policy which had followed a study. * RISKS THAT KPLC AND GOK HAVE TAKEN KPLC has taken the market/demand risk -PPAs are on a take or pay basis– this arrangement will be reviewed as the market becomes competitive. The forex risk is borne by electricity consumers. Payments are denominated in either dollars or Euros. The variations are passed through to customers. * RISKS THAT KPLC AND GOK HAVE TAKEN Political risks are borne by GOK through a legally binding letter of support issued to the projects. * PAYMENT SECURITIES PROVIDED The payment security provided to IPPs by KPLC has usually been stand by letters of credit from commercial banks in Kenya covering 3 – 4 months of payments; In view of planned increased IPP participation, KPLC requested GOK to support the sector by providing sovereign guarantees to IPPs. * PAYMENT SECURITIES PROVIDED In order to manage contingent liability, GOK requested IDA to provide partial risk guarantee to four projects (87MW Thika), (83MW Triumph), 80MW Gulf) and 52MW geothermal extension) thus dispensing with sovereign guarantees. * FACTORS THAT HAVE CONTRIBUTED TO SUCCESSFUL PPPS IN POWER SECTOR An enabling environment -National Energy Policy and Energy Act, 2006. Both recognise need for cost reflective retail tariffs and IPP charges that should, among others, enable the investors to attract capital and compensate them for the risks assumed. * FACTORS THAT HAVE CONTRIBUTE