Aggreko powers up on Kenya contract

Published on Tuesday 18 August 2009 21:11

AGGREKO shares rose to their highest level in three months yesterday after the Glasgow-based firm announced a new $30 million (£18.1m) contract in Kenya.

The temporary power provider will supply an additional 140 megawatts to the country, which is suffering from widespread power shortages after droughts took several of its hydroelectric schemes out of action.

Local press reports have claimed that the droughts, which have already caused major power cuts, could knock several per cent from the country's gross domestic product.

"It has rained in one part of the country but not another, which has taken four or five hydro schemes out of action," Aggreko chief executive, Rupert Soames, said yesterday.

The firm said key to winning the 12-month contract from a state-owned electricity company was the speed with which it could install the new capacity.

It has promised to supply the first 40 megawatts within five weeks and the balance "a few weeks later".

Soames added: "A 140 MW permanent power plant would take several years to finance, build and commission, but Aggreko can deliver this capacity in a matter of weeks, and this flexibility means that customers can respond quickly to maintain power supplies."

Once the generation is installed, the Scots group will supply Kenya with 250 megawatts, around a fifth of the country's total supply, making it one of Aggreko's largest customers.

The company already supplies around a gigawatt of power to 20 African countries. Shares in Aggreko rose 10p to 598p.