Adani's case in the US will not affect Kenya energy deal - CS Opiyo Wandayi

This comes after Adani was indicted in New York over an alleged multibillion-dollar fraud scheme as U.S prosecutors claimed that Adani agreed to pay more than $250 million (Ksh.32 billion) in bribes to Indian government officials to obtain solar energy supply contracts between 2020 and 2024.

Appearing before the the Parliamentary Energy Committee on Thursday, Wandayi said that the indictment will not affect the Ksh.95 billion power transmission deal with Kenya Electricity Transmission Company (KETRACO).

In a scattered defence, Wandayi argued that at the time of inking the deal, Adani had passed a due diligence test and proved to have a credible history in undertaking similar projects.

He said that the PPP Directorate, in collaboration with KETRACO, conducted a rigorous scrutiny exercise on Adani in two phases which proved that they were fit to win the contract.

"Phase one included a document review to demonstrate their technical, legal, financial and logistical capacity to undertake similar projects. They also presented documents on their legal standing compliance to laws and regulations including tax compliance in India," said Wandayi. 

"At phase two the exercise was conducted by 8 officers of the evaluation committee who travelled to India to verify the documents presented in phase 1."

The CS, therefore, noted that the indictment case Adani is facing in the U.S. will not cripple the energy deal in Kenya because the bribery allegations had not surfaced when KETRACO gave a green light to the Indian billionaire group.

"We had no knowledge of any other adverse matters that could have come to light and therefore we are proceeding on the basis of the outcome of the rigorous due diligence conducted by the contracting authority in line with the law," he stated.

"We can't tell because they are not related to this project and therefore we will be engaging in speculation. There has been no case of bribery or corruption in as far as this PIP of Adani is concerned."

In their deal with Kenya, Adani will manage the transmission lines and substations it will construct for 30 years, after which the project and all its assets will be handed over to KETRACO “in good condition and free of any encumbrances.”

In the build-own-operate-transfer arrangement, Adani plans to develop the 400-kilovolt Gilgil through Thika and Malaa to Konza transmission line to stretch 208.73 kilometres and have new substations in Gilgil, Thika, and Malaa.

The second 220-kilovolt line from Rongai to Keringet and Chemosit will cover 99.98 kilometres, with new substations at Rongai, Keringet, and Chemosit.

A third 132-kilovolt transmission line will be constructed from Menengai through Ol Kalou to Rumuruti and extend for 89.89 kilometres. A new substation will be constructed at the line.

President William Ruto has clarified that his government will only pay Adani using a willing charge that has already been negotiated.

He expressed confidence that the energy investment will create jobs and expand industrialisation.

"The Adani group are investing Ksh.95 billion of their money in the transmission line. We would have otherwise gone to borrow that money and burden the people of Kenya," said Ruto during the groundbreaking for the establishment of a 35MW powerplant in Menengai, Nakuru County on October 24.

Meanwhile, Adani Group has rejected the bribery charges terming them "baseless and denied", adding that "all possible legal recourse will be sought".