DAVID NDII sweats as he fumbles to explain why RUTO wants to spend Sh95 billion instead of Sh20 billion in the KETRACO-Adani deal


Sunday, October 27, 2024 – President William Ruto’s economic advisor David Ndii has jealously defended the controversial KETRACO deal with Adani Energy Solutions.

While responding to a social media post, Ndii dismissed allegations that the government overspent in the electricity deal recently signed by Energy Cabinet Secretary Opiyo Wandayi with the Indian conglomerate. 

He noted that the deal stood at Ksh95 billion, an amount which he claimed included interests payable by the government during the contract period.

He was clarifying the matter after a Kenyan questioned the government’s controversial decision to spend such an exorbitant amount of money on the construction of a 390 km transmission line despite using only Ksh20 billion for a similar project in 2017.

“In 2017, just 6 years ago KETRACO constructed a 482km line at just Ksh20 billion. Why are we building a 390km line at Ksh95 billion, almost 5 times the cost? The project should be around Ksh50 billion with kickbacks factored in,” argued the online user.

But in a quick rejoinder, David Ndii noted that the Ksh20 billion spent in 2017 for the connection of the 482km power line was paid as a headstart for the project.

According to Ndii, the money excluded wayleave and other essential expenditures payable by the government at the end of the project.

The government advisor further added that the value of the Kenyan Shilling against the dollar in 2017 also played a significant role in lowering the budget cost for the construction of electricity lines during the said period.

According to Ndii, in 2017, the Kenyan shilling stood at Ksh100 against the United States currency, compared to 2024 when the local unit's value marginally depreciated against the green buck to retail at Ksh128.

“Ksh20 billion is EPC ie contract price only. It does not include wayleave, finance costs, etc, borne by the government. PPP is the total cost. Let's do the math. The dollar was Ksh100. USD200 million is Ksh26 billion today. PPP is a total cost,” Ndii stated.

The Kenyan DAILY POST

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