POWERGRID and Africa50: Pioneering Africa’s first transmission PPP Project

POWERGRID and Africa50: Relevance for UPSC Exam

• GS paper 2: International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

POWERGRID and Africa50: Context

• Recently, Power Grid Corporation of India Limited (POWERGRID) has signed a Joint Development Agreement with Africa50, to develop the Kenya Transmission Project on a public-private partnership (PPP) basis.
  • It is first PPP mode transmission project in Kenya.
• The signing of this agreement underscores POWERGRID and Africa50’s commitment to continue to dedicate resources to accelerate development activities on the project until financial close.

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POWERGRID and Africa50: Key Points

• About: The project entails the development, financing, construction, and operation of the 400kV Lessos- Loosuk and 220kV Kisumu- Musaga transmission lines under a PPP framework.
• Role of POWERGRID: It is one of the world’s leading electric transmission utility companies. POWERGRID will provide technical and operational know-how to the project.
• Role of Africa50: It will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.

POWERGRID and Africa50: Significance

• Once completed, the project will be the first Independent Power Transmission (IPT) in Kenya.
• It will set a reference point in Africa as the first financing of transmission lines on a PPP basis.
• This Project will also improve both the supply and reliability of power transmission in Western Kenya.
• It will create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks- critical to bridging the continent’s electricity access gap.

Africa50: Key Points

• About: Africa50 is an Investment Bank for Infrastructure in Africa that focuses on high-impact national and regional projects in the energy, transport, ICT and water sectors.
  • Africa50 was established by African governments and the African Development Bank.
• Mandate: Africa50 is an infrastructure investment platform that aims to help bridge Africa’s infrastructure funding gap and contributes to Africa’s economic growth by-
  • Developing and investing in bankable infrastructure projects,
  • Catalyzing public sector capital, and
  • Mobilizing private sector funding, with differentiated financial returns and impact.
• Partners: Africa50 currently has 31 shareholders, comprised of 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.

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