The prolonged drought is affecting many parts of East Africa and threatening a humanitarian disaster in addition to severe power shortages. The water level in many of the country's dams, which determines the amount of hydro-electric power that can be generated, is very low, and without additional generating capacity KenGen would be unable to maintain electricity supplies. The 100 MW will account for about 10 per cent of the country's total generating capacity.

The contract was awarded to Aggreko following an open public tender which was advertised in the local Press and the World Bank DG Market Online web site. The tender was purchased by sixteen companies, five of whom submitted their bids within the tender period. The opening of the bids was carried out in public in the presence of representatives of the bidders and the Emergency Power Supply Committee.  

The 100 MW contract with KenGen is Aggreko's second utility contract in Kenya; under the first contract, awarded in 2000, Aggreko provided 45MW at 11kV at Embakasi in Nairobi for a period of ten months. Aggreko Area Director, Robin James, believes that it was Aggreko's performance in Kenya in 2000/2001 that underpinned the company's successful bid for the KenGen contract. "Aggreko has an excellent track record with the Kenyan government and our work on the new contract is a continuation of our good relations. The Kenya Government understands the importance of power continuity to the economy following the 2000 contract which proved that temporary power is a cost effective solution in such situations," he said.

Equipment for the contract is being mobilised in phases from the company's regional headquarters in Jebel Ali, UAE; commissioning is expected to be completed by August 2006. The contract is estimated to be worth approximately $34m over a twelve-month period. KenGen is wholly owned by the Kenyan Government, and is responsible for public power generation in Kenya.

"With 100 MW in a single location, this will be the largest temporary power-plant Aggreko has delivered, and it is the third major contract Aggreko has won in East Africa in the last 12 months", said Rupert Soames, Chief Executive of Aggreko.  In 2005, Aggreko installed 50 MW in Uganda and 15 MW in Rwanda.