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Africa Business News of Saturday, 13 February 2021

Source: GNA

Kenyan firm secures 6.45 million dollars energy contract in Djibouti

KenGen has secured 6.48 million U.S. dollars contract to drill geothermal wells KenGen has secured 6.48 million U.S. dollars contract to drill geothermal wells

Kenya Electricity Generating Company (KenGen) said Thursday it has secured a 709.82 million shilling (about 6.48 million U.S. dollars) contract to drill three geothermal wells in Djibouti.

CEO of KenGen Rebecca Miano said that the contract with Office Djiboutien de Developpement de l'energie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG) is part of the company's diversification strategy to leverages its expertise in geothermal energy across Africa.

"It is therefore our desire that in the next couple of years, we shall have considerable presence in countries within the continent. It is also worth noting that we are not only keen on increasing our presence in Africa, but also enhancing energy capacities across the region," Miano said in a statement issued in Nairobi.

In October 2019, the company secured a 53 million dollar contract to drill 12 geothermal wells in Ethiopia, according to Miano.

The electricity producer said that it has invested in experts with considerable experience in geothermal exploration and drilling and will build the capacities of teams from Djibouti who will be working on the project.

Charles Keter, cabinet secretary of the Ministry of Energy, said that African nations share the common aspiration of delivering electricity to their people, which provides an opportunity for the different countries to work together to meet the continent's energy needs.

"The biggest challenge has remained access to electricity in remote areas, and in Sub-Saharan Africa with 573 million people not having access to this important commodity," he said. "Although energy access policies have continued to bear fruit, with 2019 data showing tremendous progress, we have seen the coronavirus pandemic reverse the gains. We can only remain optimistic that things will change in 2021."

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