Wärtsilä signs service agreement to operate and maintain Kenyan power plant

Wärtsilä Corporation, Press release 20 July 2012 at 13:00 UTC+2

Wärtsilä, a leading global supplier of flexible and efficient power plant solutions and services, has signed an Operations & Maintenance (O&M) agreement with Gulf Power Ltd (GPL), a subsidiary of Gulf Energy Ltd, a market leader in the Kenyan energy sector.

The agreement is for ten years, and will cover the full operations, maintenance and servicing of the power plant to be built, located in Athi River, southeast of Nairobi. The contract to supply the turnkey power plant was signed in March 2012. The plant will be powered by Wärtsilä engines running on heavy fuel oil (HFO), and is scheduled to be completed by September 2013. When operational, it will have an electrical output capacity of 80 MW that will be fed to the grid. It will be the third largest HFO power plant installed in Kenya to be exclusively operated by Wärtsilä.

“Our extensive experience and know-how in O&M, together with the efficiency and reliability of the Wärtsilä equipment, will be of tremendous value in ensuring the success of this important project,” says A.P. Singh, General Manager, Wärtsilä Services, South Europe & Africa. “The power plant is designed with high operating efficiency, low generating costs, and reliability as key criteria, and these are all areas where Wärtsilä excels.”

The GPL power plant will greatly assist Kenya to achieve a more diversified energy mix and increased stability in its power generation. The country relies heavily on hydropower, which is frequently prone to supply interruptions because of drought. This new power plant will, therefore, notably increase Kenya’s installed thermal generation capacity. Norman Wanyiri, General Manager, Gulf Power Ltd, said: “This is a milestone achievement in developing the power generation business in Kenya.”

Wärtsilä’s total installed thermal generating capacity in Kenya will be some 434 MW by the end of 2013 when the GPL power plant comes on stream. This represents approximately 60 percent of the country’s total thermal capacity.

O&M Agreements

An Operations and Maintenance agreement is a comprehensive form of asset management. Typically, such agreements can be tailored to cover the entire scope of operational, management, and maintenance services, as well as providing performance guarantees for the installation. By taking responsibility for operating and maintaining the facility, Wärtsilä will implement its global best practices to ensure that it delivers the design output with maximum efficiency.

Wärtsilä is an experienced operator, with a proven track record in O&M services. Globally, more than 16 GW of generating capacity in both marine and land-based installations – a total of 506 installations to date – is covered by Wärtsilä’s O&M and other service agreements, of which 18 such agreements are in Africa. The GPL agreement is Wärtsilä’s third O&M agreement in Kenya.

For further information please contact:

General Manager
Wärtsilä Services
South Europe & Africa
Wärtsilä Finland Oy
Tel. +358 40 587 5549

Tuula Franck
Senior Manager, Media and Stakeholder Relations
Wärtsilä Corporation
Tel: +358 400 267555

Wärtsilä in brief:
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2011, Wärtsilä’s net sales totalled EUR 4.2 billion with approximately 18,000 employees. The company has operations in nearly 170 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.