Mombasa Barge-Mounted Power Project

concluded

Westmont Ltd. of Malaysia was developing a 46-MW barge-mounted power plant off the coast of Mombasa, Kenya. Sabah Shipyards, subsidiary of Westmont Ltd., was the primary contractor, equipment supplier, and operator. A 7-year PPA was signed with the Kenya Power and Lighting Company (KPLC), the national utility. The estimated cost of the project was 50 million ringgit (approximately US$35 million). In August of 2004, the government decided not to renew Wastmont's license and ownership of the plant reverted to the government. Westmont's failure to renew its contract was viewed as a protest to a Government decree that independent power producers cut their power tariffs by half. The supply and pricing arrangements of the Mombasa project and the 46.4-MW Iberafrica Power Ltd. project in Nairobi have been controversial and have resulted in delaying the effectiveness of a $125.0 million World Bank power sector credit and a $220.0 million IMF structural adjustment facility.