Kenya is to get a $1.3 billion coal-fired power station, as the Kenyan Electricity Generating Company signs a construction agreement with Daewoo International.
The South Korean overseas investment company announced conclusion of the deal on Monday, revealing that it had been awarded the contract to build the $1.3 billion power plant in Kilifi county in south-eastern Kenya.
The station will generate power through coal-burning technologies, and will play host to two 300-megawatt turbines, according to Reuters news agency.
Once the infrastructure enters in to operation, the power station will be the largest plant in East-Africa.
The Kenyan government is currently pushing for expansion of its power generation capacity, and aims to increase production by 1,500 megawatts by 2019.
Attending the signing ceremony in Seoul on Sunday, Kenyan Prime-Minister Raila Odinga highlighted the importance of the present deal in achieving the government’s targets, noting that the plant once operational will significantly boost the country’s power output pushing the country closer to its power targets.
As neighbouring country China has been seen speeding up its rate of investments on the African continent, – which is widely considered to play home to six of the ten fastest growing economies in the world – , South Korea has also started to ramp up investment projects and aid initiatives on the continent in an attempt to position itself among the big-players in the development of Africa – which is heralded to host unrivalled potential for investors in the coming period.
The South Korean construction sector has in particular been leading the way into Africa, with the International Contractors Association of Korea recording 28 percent rise in Korean construction projects on the African continent year-to-date as compared to last year’s corresponding figures.