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{
    "id": 864387,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/864387/?format=api",
    "text_counter": 93,
    "type": "other",
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    "content": "revised in 2010 and further revised in 2012. This policy document sets out connection obligations as follows- (1) The feed-in-tariffs values set in this policy include a standard allowance for interconnection costs. The cost of interconnection, including the costs of construction, upgrading of transmission and distribution lines, substations, and associated equipment, are to be borne by the developer. (2) The interconnection costs will be paid by the developer upfront. Where the off-taker constructs or upgrades its grid, the costs shall be recovered from the seller through the feed-in-tariff‟‟. Mr. Deputy Speaker, Sir, in this particular case of Lake Turkana Wind Power Limited, the Government abandoned its policy that I have quoted and syndicated a loan from the Spanish Government of Kshs17 billion and further contributed a Government of Kenya kitty of Kshs3 billion for its parastatal known as Kenya Electricity Transmission Company (KETRACO) to construct the line which is a construction that ought to have been done by LTWP. Mr. Deputy Speaker, Sir, there is no evidence that any arrangement is in place to recover this construction cost from LTWP. Mr. Deputy Speaker, Sir, as I make this important statement, it has been established that a trial run has shown that the company at its most optimum production will manage to produce between 40 to50 per cent of its capacity. Yet, because of the delayed commissioning of the facility, LTWP has laid a claim to the GoK for payment of what they call “deemed generated power at 100 per cent capacity”. Mr. Deputy Speaker, Sir, already a staggering sum of Kshs5.7 billion has been paid to the LTWP for no delivery of power at all. The company is demanding a further payment of Kshs9.6 billion for the same “deemed generated power”. Mr. Deputy Speaker, Sir, on what basis is the Government of the Republic of Kenya making the astronomical payments to the LTWP without the supply of a single megawatt of electricity, when, in fact, the same GoK should be demanding reimbursement and recovery costs in relation to the Spanish loan and its contribution amounting to Kshs20 billion for the construction of the transmission line? Mr. Deputy Speaker, Sir, the Government of Kenya should explain to the Kenyan taxpayer the total amount of money it intends to pay to Lake Turkana Wind Power Company Limited for the so-called deemed generated electricity and how much power will be fed into the grid by this company and how it will impact on the cost of electricity to the consumer."
}