Challenges of implementing thermal powerplant projects in Kenya,the case of Kipevu III 120MW power station,Mombasa Kenya

Abstract

The overall objective of this research was to investigate the challenges of implementation of Diesel thermal Power Plant Projects. The objectives of the research were to identify the technical challenges on implementation, establish political and legal constraints, determine financial challenges and identify human resource challenges affecting implementation of diesel power plant projects. Through literature review, it was shown that power projects face challenges like human resource, technical challenges, financing challenges, health safety and environmental challenges as well as political challenges. Data was collected through observation, questionnaires, interviews and document analysis. The researcher targeted 601 individuals who worked on the project as employees of the Contractor, subcontractors and KenGen staff.. The project was executed with over 601 personnel from Wartsila and KenGen, subcontractors who included Civicon limited, Central Electrical Ltd, Mulji Devril Ltd, KK Security Services and SKM consultants. Health, safety and environmental issues were addressed though one person died during the platform civil works by Mulji Devril Ltd. KenGen funded the project from funds raised from the public infrastructure bond. Overall the project was successfully executed with the power plant generating up to 119 MW of electricity with auxiliary consumption of 2.1 MW and exporting up to 117 MW of electricity after 15 months of construction and commissioning. The project experienced challenges but were addressed effectively leading to project successful execution. Challenges encountered included the need to carry out environmental impact assessment, project delays due to accidents including death of a worker during the project platform. The project used over 601 people directly working on the project but most of them were employees of subcontractors. The project delayed by three months but was however technically successful in generating the desired power. Due to lack of capacity to run the power plant, KenGen decided to subcontract the power plant to a third party for operation and maintenance. It is recommended that companies should explore various funding opportunities to identify cost effective long term financing for power plant projects while companies should be strategic in human resource planning and development so that their growth plans and human resource plans are in harmony to avoid cases where projects are commissioned and the companies have no capacity to operate and maintain them. The project made use of modular construction which significantly reduced the overall cost and time of implementing the project, a technique that project executors should adopt where possible to manage project cost and time.