An American firm has denied reports linking it to ownership interest in Lamu coal project.
General Electric (GE) has termed as erroneous media reports that it had acquired a 20 per cent stake of the proposed Sh200 billion power plant.
“Despite some erroneous reports in the media, GE has no ownership interest in the Lamu project,” GE regional executive in Sub Sahara Africa George Njenga said in a letter.
It was addressed to Save Lamu chairman Abubakar Mohammed.
Save Lamu is a coalition of local civil society organisations that engages in raising awareness on the environmental, social and political challenges facing the people and environs of Lamu county.
The letter was in response to the clarification it sought in January on the interest the American conglomerate has in the power facility.
This was after media reports said GE had agreed to buy a Sh40 billion stake in Amu Power and to manage and maintain the Lamu coal plant.
Amu Power Company is a consortium of Gulf Energy and Centum Investment that is managing the project in partnership with Power China.
Environmentalists have opposed the project saying the plant will release toxic pollutants and leave behind ash that can contaminate groundwater supplies.
The power project is envisioned to produce 1050 megawatts upon completion.
It will be established on 975 acres at Kwasasi Village, Hindi division, in Lamu West.
Save Lamu is opposed to the rollout of the project without the locals’ participation.
The organisation has also raised safety concerns over the coal project, economic benefits notwithstanding.
It wants the locals’ input, livelihoods, health and culture considered.
“We are not anti-development. We support development that support the people of Lamu. The future generation depend on our decisions today and protecting Lamu’s identity is our priority,” Mohammed said.
“Save Lamu will therefore not relent in pushing for sustainable and responsible development that puts community’s participation at the core of decision making,” he added.
The government has, however, defended the project terming it as clean-coal.
“The plant, which will be located in Manda Bay, is on Build Own Operate model over a 25-year concession period,” Treasury CS Henry Rotich said in June last year on budget day.
The coal plant is part of the government’s initiative aimed at producing 5000 MW by 2020.