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{
"id": 186038,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/186038/?format=api",
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"type": "speech",
"speaker_name": "Mr. Gumo",
"speaker_title": "The Minister for Regional Development Authorities",
"speaker": {
"id": 160,
"legal_name": "Fredrick fidelis Omulo Gumo",
"slug": "fred-gumo"
},
"content": " Mr. Deputy Speaker, Sir, I would like to issue a Ministerial Statement requested by the Member of Parliament for Sigor Constituency, Mr. Wilson Litole, on the alleged sale of the Turkwel Power Project to Kenya Electricity Generation (KenGen) Company. Mr. Deputy Speaker, Sir, Kerio Valley Development Authority (KVDA) was established through an Act of Parliament, Chapter 441, to undertake long-range integrated planning and implementation of projects in its area of jurisdiction. In order to enhance sustainable and optimal utilisation of the resources in the region to the best advantage of the community, the KVDA is mandated to: (1) Carry out resources and development studies and undertake long-range planning. Consequently, in order to enhance utilization of the scarce water resources of the river basin, and as part of the poverty elevation strategy, the Authority undertook the construction of the Turkwel Project from 1986 to 1991. That was a major development achievement. The hydro-power component of that project was meant to provide a revenue base for the development of the other phases of the project, as well as initiating other projects on an integrated basis, that is, irrigation upstream and downstream, and the overrall development of the Authority's area of jurisdiction. Mr. Deputy Speaker, Sir, the take-over of the Turkwel hydro-power generation and transmission aspect from Kerio Valley Development Authority (KVDA) to Kenya Power and Lighting Company (KPLC) and transfer to KenGen was not sunctioned by the Government through any formal due process, and neither was it effected through the consent of the Board of Directors of KVDA. In this regard, it is important for the House to note that KVDA did not identify KenGen or sell the power generation asset to KenGen. During the re-organization of the power sector in the country in 1992, the Government was supposed to re-organize KPLC so that a new company is formed to deal with power generation, and KPLC to handle distribution and transmission. Subsequently, KenGen was formed to handle power generation and public assets. That re-organization was meant to avoid any conflict of interest. KPLC was doing both generation and transmission. It is at that time that the power generation facilities and transmission of the Turkwel Project were administratively signed to KenGen, while KVDA retained the dam. During the take over of the assets, the power generating assets and transmission lines were valued at Kshs7,000,825,000 and the dams were valued at Kshs5.7 billion. That valuation was carried out and documented by the PriceWaterHouseCoopers. 2370 PARLIAMENTARY DEBATE August 6, 2008 Mr. Deputy Speaker, Sir, KenGen, and its predecessor KPLC has since 1994, been paying an annual amount of Kshs45 million to KVDA. That amount was not based on the real value of the water released from the reservoirs to generate hydro-electric power, and it is inadequate for the activities that it is intended for. In fact, in effect, the Authority has been denied a source of revenue to implement development projects within her area of jurisdiction, including catchment conservation and environmental conservation. The take over of the assets from KVDA to KenGen without commensurate compensation has had a devastating effect on the performance of the Authority in planning and resource mobilization and implementation of viable multi-sectoral development projects, employment creation and poverty eradication."
}