AIF I Fll C f Y RESTRICTED Vnolume 9 _ _ v * Report No. AF- 58a This report was prepared for use within the Bank and its affiliated organizations. | They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. I .1~~~~~~~~~~. INTERNATIONAL BANK FOR RtCONSIRuu11uN AUND bVbDEVLOPMENT INTIRNATIONAL DEVELOPMIEN- ASSOCiATION PROSPECTS FOR ECONOMIC DEVELOPMENT IN EAST AFRICA (in four volumes) VOLUME II - KENYA (in seven parts) PART SIX: ANNEX E - ELECTRIC POWER August 31, 1967 Africa Department EQUIVALENTS lr r en c V i Kenya Snilling U. $0. 14 U.S. $1 K. Sh 7. 14 £ 1 U.S. $Z.80 L 1 K. Sh 20.00 Throughout this report, unless otherwise stated, tons refers to long tons of 2240 lbs. COMPOSITION OF THE MISSION This rpnort is bhsei onn thp findinrp of a Mission to Fast Africa which did its field work in October, November and December 1966 and consisted of the f'olloviwing: .TJhn r. rde lT5 1r1 rGh- ief of Missior (TPPTIB Colin M. F. Bruce, Deputy Chief of Mission sand Chi 1- f Economist - K enya (y IDPT) Kudlapur G. V. Krishna, Economist - Kenya (IBRD) r ,Alh . _' . A 1,urS; A -; 1 Us 1 4- t ral AA- _ 7 r{v A n Maurice Fenn, Agricultural Economist - Kenya (FAO) and Chief Economist - Tanzania (Consultant) )I-U.I1O Th JUllIe.LbIld, DThUIUIf1rlUD I di[1Zd[LL1! ItlDIULJJ Archie Forbes, Agricultural Adviser - Tanzania (FAO) Jacques Kahane, Agricuiuural Economisu - Tanzania (IBRD) Otto Maiss, Deputy Chief of Mission and Chief Economist - Uganda (IBRD) Nicholas Carter, Economist - Uganda (IBRD) David vT. M. Haynes, Agricultural Adviser - Uganda (IBRD) Montague Yudelman, Agricultural Economist - Uganda (Consultant) H. Davld Davis, Adviser on Tourism (IBRD) Bernard H. Decaux, Adviser on Industry (Consultant) Jack Derrick, Adviser on Industry (Consultant) Edward V. K. Jaycox, Adviser on Transport (IBRD) Aristides J. Macris, Adviser on Agricultural Training and Education (IERD) David McLellan, Adviser on General Education (Consultant) Lyell H. Ritchie, Adviser on Industrial Finance (IFC) Gavin Wyatt, Adviser on Power (IBRD) The Missionts findings relate for the most part to the situation as of the end of 1966, although in some respects note has been taken of developments up to the middle of 1967. ELECTRIC POWER IN KENYA Table of Contents Page No. Summary and Conclusions Introduction ............................................... 1 Demand for Electricity ..................................... 2 Existing Installations ......................3 The Companies' Licenses .................................... 5 Organization ............................................... 5 Finsneial Situation ........................................ 7 Tariffs ....................... 10 Futwre Demand .............................................. 10 Capital Program .......... .. .......... 11 Future Strategv ... Tables 1. The East African Power & Lighting Company Limited: Maximum Demands, 1950-5C 2. The East African Power & Lighting Company Limited: SLL'es ofU JPlectrictfl. E J 1950=65 3. Installed Generating Plant & Bulk Supply (EAP&L and KPC) 4. Financial Statistical Record of the East African Power an' TLight4ng Company Llmite 5. Balance Sheet of the Kenya Power Company Limited at Dlecemb'Ler 31, I1965 6. Income and Expenditure Account of the Kenya Power Company Limited for the Year Ended Decer.ber 31, 1965 7. The East African Power & Lighting Company Limited: E st iCmate of. .n.l. LSent Out 1-nd Estimatve of LIi Demand, 1962-75 8. Large Industrial Cons-mers of Electricity Epected to be Connected, 1967-71 9. Kenya Electrical Power Indusitty (Public Utilitles): Estimated Annual Capital Expenditure, 1966-70 10. Kenya Electrical Power Industr-y (P-ublic Ut+vilities): Estimated Capital Expenditure & Sources of Funds, 1966-70 MAP EL'ECTRIC POWIER IN KENYA SU1IABY AND CONqCLUSIONS 1. Sales of energy which in recent years have been relatively stagnant showed signs of resuming their former upward trend in 1966. This trend is expected to continue and an average annual increment of about 9½, percent is forecast during the period 1967-75. 2. The demand for energy in the past has been met by developments of small run-of-river hydro projects combined with diesel stations and bulk supply from Uganda in the Nairobi and West Kenya area, and by an oil-fired steam station at the coast. 3. Additional sources of energy will be needed in the coastal and Nairobi and West Kenya areas by about 1970 or 1971. Present tentative Dlans (still in the formative stage) provide for an extension of the Mombasa steamn station at Kipevu and construction of a transmission line from Mombasa to Nairobi by about the end of 1970. These plans assume that Kenya will continue to imDort a bulk supDlv of 30 MW from Uganda. 4. In view of Uganda's nresent and future interest in some form of cooperation with Kenya in the development of major generating resources and the probable savings in ecrital expenditure and reduction in costs of power to both countries, an immediate attempt should be made to reach agreement with Uganda on a detailed 1 oint investigation of a possible program of cooneration and the benefits which would thereby accrue to both countries. If a decision to cooperate in principnle cannot he reanh9ed hefore early 1968, hoth nointri es will be obliged to commence -their own major projects to avoid a power shortage in the early 1Q7(1_ and the opportuinity for joint dev.melopment of a manor nrire-t may not arise again for many years. 5. The program for development of sub-economic projects in outlying areas should be carefu1 lv 1 devised to t-ake a colnt. of the enapaitv of the distributing company to absorb the annual losses without undue detriment to existing cons-,mose interests and of the conyr.r.ny's ability to borrow r-.roey ln world markets. 6. The East African Power & Lighting Company Ltd. should be encouraged by suchl ri-iears as are aeva4-lable to the Governnmrcnt to provide as much finance -Prom internally generated funds as possible, having due regard to what the business \' 11 S ban v7J .L-L b .LI U. 7. Telre is a need to improlve coopCerat-A}lon ueUwCC 1±1 ir diratU1i aniu pouwe interests in development of the Tana River. 8. While the EAP&L is-vigorously pursuing a program to train Kenya cl LlZa11s to occ-u-py postLs at -l le-vels lin thne lbo-ly it is 11ahUuidi pped by the fact that relatively few students in the secondary schools receive the technical traini-ng essential for careers in the power inaustry. ELECTRIC POWER IN KENYA Introduction 1. The public supply of electric power in Kenya has always been pro- vided by private enterprise. In 1907, a company was formed to provide suppli-es for Nairobi and, in 1909, another company was formed to supply Mombasa. Demand grew rapidly and by the end of the first World War both companies were having difficulty in raising the capital required for development. 2. Reconstruction of the companies took place in 1922 with the assis- tance of Power Securities Corporation Limited of London. The two original companies were combined into the East African Power & Lighting Company Ltd. (EAP&L) which today is the only public supplier of electrical power in Kenya.. Since the EAP&L was formed in 1922, the Government has from time to time granted the Companv licenses to extend its supplies into new areas. Nakuru and Eldoret were first supplied in 1931 and 1933 respectively and, since then, licenses have been obtained and sunnlies initiated to Kisumu- Kitale, Nanvuki, Gilgil, Thomsons Falls and other important centers of population. Supplies tc) Nveri were first nrovided hy the Government of Kenya but the iindertnking was subsequently taken over in 1960 by the EAP&L in exchange for 150,000 i1 shares in the Com-nny issued at par and a payment of T5r,OOn in cash. Q ~~~~T- I O]CZ)i hk- 11-nn Aun Ti' -r+t^; r-i +,r ln-,Al (TTWR wli k.h r> -hA + sI,nn mnrmz the EAP&L Company's assets in Uganda in 1948 and built the Owen Falls Power Station on the Nie,I -pr -ceVAD9JT with an offer of a bu'lk supply at Tororo on the Uganda/Kenya border. At that time, the EAP&L was faced with the alter- natILive of extending its dALiesel gener ating plantW in t'he -alrobi. area or0 embark- ing on a major hydroelectric development at Seven Forks on the Tana River. houghl thi'e proposedu cost of Uganda puwer dlvered lo lairob was no' J-LL,L UUl 1 Cl. UCU A U11 UCid UCL UC=L± VIu LU Lq0.L L.LUJ Wd Uu comparable with the cost of locally generated hydroelectric power in the Nairobi area (see paragrapLJ 3i 6 ) fro0m the L -m1anWy' -L Co ' exls stations, it was less t,IWI the cost of diesel power and had an attraction to the EAP&L in that it enabled Uwhe uor u- LI ralsing of large auus of capital for the Forks project. 4. Negotiations for a bulk supply of 45 MW from Uganda were completed at- 4the enA of 1955 1, a he Ke.y PoerCrlpa, Limite (C)- Ta fome 4totM \_ - dL,L UL±1 Cul IJ ± ) WU. LlIIe 0,t:1Y LUWCI. '..VUICU1JJ .U±I. L CU.Uv %I"J %...) WC.O 1U. ULme'. 'Uo build the necessary transmission facilities from Tororo to Nairobi. The KPC a'lso purchasedL thi'e T-Tar,i and Ta, hyrolctl geeatn sttin of -the- ~----- -4 --4 ---- - d.±bU j9LU .11C~CU. WV YVd. cLJ± 0 LU. I dd.Iy 1UCL L± L ry,11ie± LC.L1IE, Qum L v.±liz U!L ,IAu EAP&L in the Nairobi/Fort Hall area together with the principal transmission ,2. ~ ~ tt~~ .L4-2 4 WT.2..jL2 r.. ~~~ IC% r - ~ AfTlO0T 3.-...2fl.- ~ fl .4... - lines frrom bIIee sttations LU Nairobil. Ir. _rU ± 19U), the ErLcii UCideUd= LU proueeU with the first stage of the Seven Forks project and for this purpose formed the Taria River Development Company Limiteduu (TRDC). 5. The companies comprising the electrical supply industry Lil Kenya today are therefore as follows: the EAP&L which distributes and sells power to consumers at branches througnout the country; the KPC wnich purchases a bulk supply from Uganda and generates some hydroelectric power in Kenya and sells the whole of its energy to the EAP&L in bulk at ascertained cost; and the TRDC which is now constructing at Kindaruma the first stage of the Seven Forks project, the output of which will be sold in bulk to the EAP&L at ascertained cost. The KPC is managed and staffed by the EAP&L and it is expected that similar arrangements will apply to the TRDC as soon as it commences to supply power. 2- Demand for Electricity 6. The growth of maximum demand from 1950 to 1965 is shown in Table 1. The increase in the total from 0n . Mwi in 10Q5 toi 8R 3 MW in 196c5 rpnresent an average annual growth rate of 9.8 percent over the 15-year -oeriod. Although growth in the Nairobi and West Ke-ya area averaged only 9.3 percent over the whole period, it averaged well over 20 percent annually between 1950 and 1954. Cinc 1954 the nnual growth- '-as b1een at a mluc-h- lower rate anl ve-, erratlc. Cliluc ~ ~ ~ ~ ~ U .1.y.* s~ JJ 4L 5 J U L tD LC± U C IU~I 40 ±I C.- -aUcLL v W > -_I . L,L ± O t Some of the fluctuations in growth rate have been caused by control of the HUAxItiu UCAJ±~-~.J4 - 1~ t U C 414U --'.L -'1 J. E-y UJt--4-A, L.LJIU 34. 4 iI ~ -m-lumll de-man.-d through t1ne i nt-rodu_LtJio ofL Illy UII,Latc control -of th-I-e watler heating load in the Nairobi and Mombasa areas in the 1950's, but principally uiey had.ve been± cOausedU. buy Jpo.L i-tial iUac.tlors , stUart1in, W-Lith Uthe '1.lau i'4au rebellion at the end of 1952. 7. The growth of maximum demand at the Coast has been much less erratic than up country, mainly- because of the addition of large industria loads sbuch as cement and oil refining in recent years. Growth over the period has been at an average ainual rate of about 12 percent and has been markedly higher than Nairobi and West Kenya in the last four years. The maximum demand in Kitale has remained relatively static since 1959 due to the repercussions of political events on the European farming community, on whom the electrical evelopm)en' o' the area has unt-il -very recently Udepended. nL Nnyuki, the maximum demand has fallen since 1961, due almost entirely to the withdrawal of Britlsh troops, who had previously provided most of the dema-nEad in this area. In other respects the Nanyuki situation is similar to that of Kitale. 8. The growth of sales from 1950 to 1965 is shown in Table 2. The average annual growth rate of about 12-4 percent over the i5-year period is higher than the rate of growth in demand referred to in paragraph 6 above. This is principally due to the improvement in load factor obtained from intro- duction of rhythmatic control of the off-peak water heating tariff, referred to in paragraph 6 above. 9. Growth of sales in the coastal area has averaged abcut 15¼> percent a year over the last 15 years, compared with about 11½ percent a year in Nairobi and West Kenya. Almost all of this growth has been due to an increase in industrial sales of about 19 percent a year, as compared with about 11½- percent in Nairobi and West Kenya. Mombasa as the only seaport in Kenya has attracted the larger industries such as cement and oil refining, which are dependent on imports or exports, whereas Nairobi has attracted a greater proportion of smaller secondary industries, because it is the center of a large local market. Industrial sales accounted for 69 percent of the total sales at the coast compared with only 36 percent in Nairobi and West Kenya. 10. Residential sales (including off-peak water heating) which represent 45 percent of total sales in Nairobi and West Kenya and only 16 percent of the total at the coast, increased at average annual rates of about 11-3/4 percent and 10½< percent respectively. There was a drop in sales on these tariffs amounting to 21½ percent in Nairobi in 1965 and 4 percent at the coast over the two years, 1964 and 1965. Sales on the commercial tariff (after making allowance for transfers between tariffs) have increased at an average annual rate of about 101½ percent over the 15-year period, both at theb coast and up country. 11. Frorr thep qboavrp, it+ w,iII-l- be seen that+ ove-r the. past_+ I5 yeaqrs the demand for power has shown considerable sensitivity to the political situation, especially in the -p-cou+nt- a-reac where sales a-ne m p nant+l toP 1repsidentla P consumers. Until very recently, the demand for electricity in Kenya arose amst entire'ly from the European and Ans-ln coh.te.Itwsieiale therefore that the readjustments necessitated by the changes in the political s4i4uation inrcetyer would have 4thleir e ffect4 on the- LI.mar. Hoevr these changes should be of a transient nature and the underlying strength _, 4.b 1- 4 4 4- - 4 - A , - - 4. -a 41 -l 4| 4 _|1,4 - U1 (S11e 1nd s rL -a 'UU; C 1101Ie r C i C= L dlL e;lllU 1-; I G- 1- t Atl L t. 5 ;:t=UI I b ,U -L I I U_L U ttL,r LII C L Ul L '111D period of adjustment is ended, sales should resume their upward trend. Phe indications frolm the first ten months of 1966 are thatI the transition period may now be ending and the increase in sales for the year may be the highest since i960. This is particularly noticeable in the Nairobi and West Kenya areas where most of these increased sales have taken place. Existing Installations 12. The attached map shows the location of the generating stations and the main transmission lines. Except for the minor undertakings of Kitale, Nanyuki and Meru, all the up-country branches are supplied from a central grid, the backbone of which is formed by the 132-kv bulk supply lines from Uganda. Of the power consumed by this system, 95 percent is supplied by the KPC from its bulk supply imports and from generation at W-anji and Tana hydroelectric stations in Kenya. 13. The capacity of installed generating plant at the different genera- ting stations is shown in Table 3. Total powqer facilities available are: Hydroelectric plant in Kenya 27,900 kw Thermal plant in Kenya 83,742 kw Bulk supply from Uganda 30,000 kw Total 141,642 kw Of the total of 141.6 MW approximately 120 MW may be regarded as firm, having regard to the size of units, the age of plant and the dry season flow of the rivers. 14. All the hydroelectric generating stations in Kenya (EAP&L and KPC) are run-of-river with only limited daily pondage and are situated in the Nairobi and West Kenya area. The two I-PC stations are some miles apart in the Tana River Basin and the water discharged from the upstream station (Wanji) is used in the downstream station (Tana) about five hours later. Since both these stations have limited daily pondage only, and in the dry season river flows vary considerably from day to day, the programming of their operation in con- junction with the thermal stations is a very complex matter if maximum usage of water and maximum efficiency of thermal plant operation is to be achieved. Considerable skill has been acquired by the staff over many years' operation and although the river flows fall to about 50 percent or less of the installed plant capacities at hydro stations, the peaking capability of the system at these times is only slightly reduced. 15. The largest unit on the Nairobi and West Kenya system is only 4 1MWv, WhiiLlc ls notU S IsuicLienlt Z uctaduuy fUo UtIh tUodtl syserL capablity of 9 M1 Firm capability has therefore been assumed to be the total capability less the gas turbines and temporary station at INairobi South M either of these items is suitable for continuous running *- the gas turbines because of their very high fuel consumption anld the temporary station diesels because of their age. 16. Most of the 60 diesel generating units, which vary in size from 50 kw to 2,200 kw, have been in service for a long time, in some cases about 20 years. However, apart from the temporary station, most of the units in the Nairobi area have been used mainly for peaking purposes and for firming up the hydro generating plant since the mid-1950's. Provided they are limited to this duty, they could continue to serve a useful purpose for a good many years to come. 17. The gas turbine plant at Nairobi South consists of two 2.5 MW open cycle units, derated to 2 .2 MIW for ambi-ent air temperature. 'T'hese units were installed in the early 19507s and are two of the first (if not the very first) commercial gas turbines installed by a public utility. They are designed to run on heavy fuel of 1,500 Redwood viscosity. They suffer fro:m the disadvan- tages that they require a wfarming-up period of about ten hours, they have a high fuel consumption, and the ouitput is very sensitive to ambient air tempera- tures. On the other hand) their control is largely automated and they are very reliable in operation. 18. The Kipevu steam station at M,qombasa contains three machines of 5 M\W each and two of 12.5 lMi. The station was commissioned in 1957 with two 5 M'41WI machines. The last machine of 12.5 MW was installed in 1966. The station uses Bunker 'C' fuel. 19. The long rail haul of 300 miles from the coast to Nairobi adds about 35 percent to the cost of industrial diesel fuel and about 70 percent to the cost of Bunker IC' fuel. Thermal generation in the Mairobi and up-country areas is therefore relatively costly. In the case of diesel generation, costs are further increased by the derating of plant due to altitude. To quote an example, a diesel engine of 1,000 H.P. rating at sea level will only produce about 720 kw at Eldoret (7,000 feet altitude), thus increasing the capital costs of a diesel station in Eldoret by approximately 40 percent. The Nairobi and llest Kenya developed areas, which account for 74 percent of electricity sales, range from about 4,000 feet to 9,000 feet altitude, tlhe main centers of Nairobi and Nakuru being at 6,000 feet. 20. The transmission system of Nairobi and West Kenya is 'based on the KPC's 250-mile long double circuit 132-kv bulk supply line from Tororo (five miles beyond the Uganda border) to Juja Road Substation in Nairobi. This line, which crosses the Mau mountain range at 9,000 feet altitude, has intermediate 132/33-kv step-down substations containing sectionalizing switches at Lessos, for the supply to Eldoret, Kisumu and Kericho, and at Lanet, for the supply to Nakuru, Naivasha and Thomsons Falls. Although the line passes through an area of high isoceraunic intensity and special precautions had to be taken to reduce corona discharge at high altitudes, it has proved remarkably reliable in service. It operates at a transmission efficiency, including step-down transformer losses, of about 92 percent. The line has proved stable when operating with an input -5- of L MW at. Tornoro. 21. Wi+h the exception of two 66k lines f--- the Tana Pwe-r S+tion to Juja Road Substation in Nairobi, all other transmission of importance in The Compaanies ' Licenses 22. T h e pu'1 -spl- ofP elec+riclty is governe Iby 4the Electric Power Ordinance (1920), now known as the Electric Power Act, under which separate licenses ze 4ssued4 for- 4the generatio__n -, A` strib-ution ofO eletiiy The-4 4-- - r ~~ 0.1. ~J U~U .11..1 U.lc; 6cii-_ .U±LuII duiiU U± .Jb . IU.LL.U IU I J. _L 1-- . L,L L ±- _ j. 1i EAP&L is the only licensed distributor in Kenya at the present time, but its monopoly extends only to those areas defined geographically by the several licenses it has acquired over the years. The EAP&L also holds separate - 1 generat~ing licens5es for all its genlerauiung LUU±Uion. 23. The KrC operates under Buik SuppLy License No. 2 which authorizes the Company to import and transmit power from Uganda, to generate at the Wanji and Tana hydroelectric stations, and to sell in buik only to ilcensed distributors. It cannot sell in bulk to another bulk supplier, and it must sell its output at ascertained cost. On expiration of the license, by which time its capital will have been fully redeemed, the assets of the Company become the property of the Kenya Government. 24. The TRDC operates under Bulk Supply License No. 3 issued in 1965 authorizing it to generate power on the Tana River from successive develop- ments in the Seven Forks area, and sell its output in bulk at ascertained cost to licensed distributors. The license contains similar provisions to the KPC license regarding the assets of the Company becoming the property of the Government on expiry of the license. Organization 25. The East African Power and Lighting Company Limited is a Kenya company registered in Kenya. The 9,741,504 rl shares of the Company are widely distributed throughout the world amongst some 13,000 shareholders. The largest single shareholder is the Kenya Government which acquired I150,000 shares through the sale of its Nyeri undertaking to the Company in 1960. 26. The Directors of the EAP&L are elected at the Annual General Meetings of the Company held in Nairobi. The Board consists of a Chairman and eight members. In 1923 a Local Board, consisting of not less than three nor more than five members, was created in London by the Nairobi Board for the purpose of managing the affairs of the Company in England. Certain powers were delegated to the Local Board principally concerned with the manage- ment of the Company's London office and the handling of share transfers, investments and other financial matters. For many years now, the Chairman of Power Securities Corporation Limited (PSC) has been elected as Chairman of the EAP&L Local Board. The PSC was originally responsible for the formation of the EAP&L and un to the nresent drv has aeted as financial advisor and underwriter for public share issues of the Company. Other members of the TLrcl Board are prom-inent individuals connected with the develonment of the African continent, and representatives of Balfour Beatty & Company Limited - 6 - (BB&Co.), a subsidiary of the PSC. The EAP&L has had agreements with BB&Co. since the earliest days, covering such matters as consulting services, purchasing and general contracting. The Company has benefited greatly in the past from the wide experience of the PSC and BB&Co. in the power field in other parts of the world. 27. The Kenya Power Company is also registered in Kenya and has a Board of six members nominated by the three shareholders who are the EAP&L, PSC and Kenya Government. One of the two members nominated by the EAP&L must be the Government-nominated member of the EAP&L Board. The Chairman is selected by the PSC from among the two members nominated by them. The KPC also has a Local Board in the U.K. which generally, though not always, is made up of the same individuals as the EAP&L Local Board. 28. The Tana River Development Company is a private limited company registered in Kenya, with a Board of four memnbers, each nominated by one of the four partners. The partners are the EAP&L, the PSC, the Kenya Government and the Commonwealth Development Corporation (CDC) and the Chairman is nomi- nated by PSC. 29. Of the three companies, only the EAP&L has an operating staff and this Company acts as a Managing Agent for the KPC, and will probably do the same for the TRDC when it commences to generate power. The EAP&.L does not charge an aaency fee for its services since it is the sole purchaser of energy from the KPC. Charges for materials and services employed on KPC work are at cost. This close relationship between the companies and with the Government has proved very beneficial in avoiding duplication of overheads and in avoiding conflicts of interest. The close liaison with the Government through the Government nominees (who are in some cases officials of the Ministry of Power and Communications) on the Boards of the thre- companTesn , has enabled the Company and the Government to understand each other's problems and agree on C'1 ac w+it re d prdelmt 30. The staff of the EAT&L is composed of persons of African, Asia. and European origin. Most of the Asians and some of the Europeans were born in Ken.ya ar,d are Ker.yCIa ntati'_'onals.TeCpar.yM, rcognizing the--,A 4ee t1I,J the organization independent of expatriate staff, is pursuing a vigorous policy of training Ke nya citizens to occupy posts at all levels in the Company. For this purpose, it has, since 1957, operated a training establishment on which 63,000 h~as -een spent in buildings Lo dat. T he s chUol isb rL WA nurler hue direction of the Company's Personnel Manager, who is an outstanding man in this field. Current expenditure on trainli.ngr is aboutu W_1009000 a yearu and -Ls an indication of the importance the Company attaches to this mat.ter. Great difficulty is expe- 0iwetucd, hoWte VI, 1L UUL-aI inL bsutudllen Wi th1 theit= pruper background for training. For example, at the present moment, only two of the i22 Airican Secondary Schools in Kenya preparing boys for thie Ge.Uneral Ce-ft,i fiL - cate of Education are giving students any form of technical training relevant to the requirements of the engineering industr-y. This imbalance makes it difficult for technical industries, such as the power supply industry, to break away from their dependence on expatriate skiis, ariu urgent steps snouid be taken to rectify this situation. 31. The Company is efficiently run, and labor relations are good. A wage settlement negotiated with the unions by the normal process of collective bargaining early in 1966 gave the nonprofessional employees a 10 percent increase in wages in return for a two-year standstill. 32. Consultants and contractors are employed on all major power stetion and transmission works. Minor power station extensions and main extensicns up to 33-kv are normally carried out by the Company's staff. 33. The accounts department of the Company is highly mechanized anc! includes a computer which is also used for other purposes, including stal'f records, engineering problems and analysis of tariff statistics, etc. The Company collects deposits from the consumers which in total amount to about 6½< percent of the current annual revenue. Allowing for these deposits, the net outstanding revenue for unbilled energy supplied, bills being processed and bills awaiting payment is only about 5 percent of annual revenue. Bad debts in recent years have been insignificant. Financial Situation 34. The EAP&L has an authorized capital of 110 million of which 19,741,504 has been issued and paid up. The issued capital includes 11,800,000 4 percent cumulative shares and 1350,000 7 percent cumulative preference shares. With the exception of 1150,000 of shares issued to the Government of Kenya at par in exchange for its Nyeri undertaking, all the capital has been raised by public share issues. The backing of Power Securities in the London market and the prudent financial policy of the Company has enabled the Company until recently to issue shares at a high premium. As a result, the capital reserves at the end of 1963 contained an item of 11,428,998 in respect of the share premium account. This reserve was capitalized in 1964 by the issue of one new ordinary share for every four ordinary shares held, Capital and revenue reserves and retained profits at the end of 1965 stood at 13,163,793, brinling the total canital emnloved to 112,Q057299 The return on net fi=xed assets in 1965, after providing for depreciation and debenture stock interest, but. before taxati on, was 11 =Q nerent. - The return after taxation was P9 R percent and an ordinary dividend of 8 percent was paid. The dividend of 8 percent represents a return of only 4.7 percent on the capital employed, which is very much less than the cost of borrowing money in world markets today. A brief summary of the Companv's financial and statistical reeord is given in Table 4. 35. The KPC has an authorized share capital of 1100 which is owned in equal Dronortions by the EAP&L, the Kenya Government and PSC. The hblane-e of the Company's finance amounting to 17.5 million has been provided by a s:ingle issue of debentures at the time the Comnanv was formed in 1Q94 Half tht- sum realized by the debenture issue was used to purchase the EAP&L's stations3 at Wanil and Tana, together with their 66-kv transmission lines, and the hbn'nce was used to build the 132-kv bulk supply lines from Uganda, and the 132-kv step-down substations of Jiin. Rond, Lanet and LTessos The Cfompany's struicture is such that it cannot raise additional capital and its activities are limited strictly to operating the bu7lk supply, and generating power at it-s existing hydroelectric stations at Wanji and Tana. A summary of its 1965 balaance sheet is glven in Table 5. - 8 - 36. A suzjmary of the KPC revenue account for 1965 is given in Table 6, frcm the footnote to which it will be noticed that the average cost of power delivered to the EAP&L in that year was 6.9503 cents per kwh, although the averaae cost of nower purchased by KPC from the UEB in llganda was only 4-3Q cents, according to the UEB annual report for 1965.1/ In fact the cost of IUgnda nower del.Iivered to the RPAPT, in Nai-rohi is- nearly 9 cents pr- kwh -ht nearly half the power sold by KPC to EAP&L is generated at a much lower cost of abouf C; r5 cnts. at it.s Wanli and( Tana s-tat+ionq in Kena.r Thep brenkdlown -of 1965 costs per kwh sold is given below: Generated Supply Bulk Supply cents/ Wih sold_ cents/kwh s,ol rurcuv-ase' SuppjJ-ly 4.uu Generuated Supply (O '-peratU±in Uosts) 1A.14LI+ Transmission (iMailntenance') 0.09 0.Q4 Juja Road Substation (Operation and IMJaintenance) O.18 0.17 Capital Charges 3.34 3.18 Ivilanagement 0.20 0.19 Total 4.95 8.78 Million kwh sold at Juja Road Substation 159 174 Average cost of 333 million kwh at Juja Road Substation = 6.9503 cents. It will be seen from the above that basically the difference in costs of the two sources of supply is made up of capital charges and maintenance on the 250-nile transmission line from Tororo to Nairobi though the fact that 30 percent of the generating plant for the locally generated supply was installed in the 1930's has contributed to the relatively low capital charges for this supply. 37. The TRDC has an authorized capital of fl00 which is owned in equal proportions by the EAP&L, the Kenya Government, the CDC and PSC. The Company was formed in 1964 and is currently building the first 40 MW stage of the Seven Forks project at Kindaruma on the Tana River. Finance for this project estimated to cost 16.7 million has been obtained in the following manner: (1) 13,500,000 from the CDC in the form of a 23-year loan repayable over the last 20 years. Interest rate is 11¼ percent above U.K. Treasury rate at the time of withdrawal and toward the end of 1966 had averaged 8.23 percent. Interest during construction will be added to the loan. 1! This report refers to Kenyan cents of which 7.14 equal 1 US cent. - 9 - (2) 11,54'7u,000 from a consortium O0 London bankers, and secured by export credit guarantees. This sum is repayable over 10 years commencing in December 1967 at a rate, including financial charges but excluding interest, of 1184,470 per annum. The interest rate is 5½< percent. The amount of this loan can be increased to an upper limit of 11,844,661. (3) i1,639,000 from the EAP&L of which 1904,000 represents the cost of the 132-kv transmission lines to be built by the EAP&L between Kindaruma and Juja Road Substation, Nairobi. 38. From the foregoing it will be seen that the total capital employed. in the Kenya electric supply industry at the end of 1967 will be about 127 million, all of which has been obtained on a purely commercial basis without any Government guarantee (except in the case of the above CDC loan) or direct impairment of the Government's ability to borrow. Unfortunately, it seems unlikely that the companies will be able to raise the necessary capital for future development without government assistance in some form or another. The present price of the EAP&L Company's shares on the London Stock Exchange is about Shl6/-, giving a yield of 10 percent, and reflects the uncertainty about the future of the Company in investor's minds. Moreover, the Company last year agreed to a dividend limitation of 8 percent in the course of negotiations for a tariff increase. In addition, the Government is under pressure from certain sections of the Kenya public to nationalize the Company. These factors will either make it impossible or unreasonably expensive for the Company to raise money from its traditional sources in the future. Since the alternative is likely to be expensive, a relatively high degree of self- financing will be necessary in future- and with dividends limited to 8 per- cent, tariffs can be safely increased to provide for this. 39. The Government is currently discussing with the Company the possi- bility of extending supplies to 24 administrative centers situated at remote points from the Company's present networks. All these centers come within the category of sub-economic rural development of social or political impor- tance to the Government. The capital cost of providing initial supplies to them will be of the order of 1515,000 and annual losses on existing tariffs would be about 156,000. Both the Government and the Company have adopted a progressive and enlightened approach to this problem. On the one hand, the Government accepts the view that the Company cannot be expected to carry an excessive amount of losses from such areas and special financial arrangements may be necessary; and on the other hand, the Company recognizes the need for a public service, such as this, to carry out a certain amount of sub-economic development in the public interest. There can be little objection to such developments provided they are carried out in modest stages over a period of years, they are not so extensive as to affect the overall economies of the ,hl ir,- utilitisp operntins, an(9 they do not. rpqfflt in excessive charge. in the more developed areas which may be required to subsidize them. It is generally accepted +ta+ t sbid le, if np c-Icr,lr rl 'p giern rl cl t-o-+rI+r, the organizations requiring them and not indirectly through such things as electricity rates For this reason, i+ is desirable that electricity rates in sub-economic areas should be as high as the traffic will bear after making tdue allownce l s. - psit if 4 of -- gw e Uc-.and to economic levels. - 10 - Tariffs h0. Electricity rates are controlled in Kenya by the Government with the assistance of a Power Advisory Board which keeps a close check on the EAP&L Com..pnry's accoulnts and all matters affecting consumer inte-rests. The Board is composed of members of the public nominated by the Kenya Government, princip-ally fr^m the commnercia-yl' 'commini yir T mee+s at+ - u b+ 4 fil frequent, intervals as the need arises. 41. The Government's approach to rates has been pragmatic. Last year it approved 1chige in rates11 Uin o U to asis Uthe Cr,11paiy inii the funds necessary to complete its portion of the financing of the Kindaruma projectu UULL ouu IIIzU11LLI6 Uum rbin 1-ct UAte sarie time rates -were standardized throughout the up-country areas. The effect of these changes, which became ef ieeui ve in October 16uu, is LU lncreae reven-ue in 197 Dy aUoULt 8 percent, rising to 15 percent in 1969 as long-term agreements expire and are adjusted. 42. The EAP&L's rate structure has been designed to make the most effective use of capital assets. 0fi-peaK water heating tariIIs and con- cessions to larger industries for off-peak working have enabled the Nairobi and West Kenya area to operate for some years at an annual load factor of around 72 percent. In fact the weekday load factor is around 8c0 percent. Fru lte pat tWU =yearb, WiLII Uth (.e)L fier e1--y in operation, the Cust System load factor has been equally high. Part of this high load factor is due to the ver-y effective use of rhythmatic control systems to disconnect the relatively large domestic water heating load over the peak period. 43. In Kenya the average cost of energy to the consumer in 1965 on tariffs other than power was 37 percent lower than in Uganda anc. 16 percent lower than in Tanzania. On the other hand, because 25 percent cf Kenya's power had to be generated by thermal means compared with 18 percent in Tanzania and none in Uganda, and also because the return on capital investment is higher in Kenya than in the other two territories, the average cost of all energy supplied to consumers was only 9 percent less than in Tanzania and 15 percent higher than in Uganda. 44. In 1966 the Government and the EAP&L jointly commissioned a tariff expert to carry out a review of all Kenya tariffs. His report is expected early in 1967. Future Demand 45. In 1963, the EAP&L commissioned the consulting firm of Merz & McLellan to carry out a market survey of the demand for electricity in Kenya for the period, 1964-74, and also to forecast the possible growth rates in the various areas of supply from 1975 to 1983. A summary of the results of this forecast for the years, 1962-75 is given in Table 7. 46. Comparison with the actual sales for the four years 1963-66 (see Table 7) shows that, while the forecast for Nairobi and West Kenya was only slightly above the actual figure for 1966, the forecast for the Coastal Area greatly exceeded the actual demand. This error arises almost entirely from an overestimate of the demand of the new oil refinery which staited production - 11 - in 1964 and the extension of the Bamburi cement factory. Since there is reason to believe that this is due only to a lag in the timing of the oil refinery's and cement company's plans for development, the actual demand may catch up with the estimates in the future to some extent. Industrial demand. in 1965 was only about 5 percent below the forecast in Nairobi, but nearly 24 percent below at the Coast for the reason given above. Other demands were about 14 percent below the forecast in Nairobi and 12 percent at the Coast. 47. The Merz & McLellan report takes into account all the factors which might be expected to have influenced the trend of demand, including the re- duction in the rate of increase in domestic demand following independence in 1964, as a result of the replacement of expatriate consumers by Kenyans (whose initial demand is usually less than that of their predecessors), and the departure of British troops. 48. There are no maior centers of population or development in Kenya outside the existing areas of supply which by their connection to the EAP&L's network could cause an appreciable increase in demand. The Companv is currently discussing with the Government plans for new supplies to be provided for 24 administrative centers, as mentioned in paragraph 39; but the demand from these areas is likely to be insignificant for many years. 49. The only known prospective industrial consumers of over 500 kw maximum demand are shown in Table 8. In addition, a proposal to build a puLp mill at Broderick Falls has been under consideration for many years, but there are no indinations that this lnad will mTteriqli7e hep-ore lQ70 Tn the nas of existing power consuming industries, most are anticipating annual increases in nroduction of around 1Q nereent a year over the next five vears nnd some, such as canning, textiles and woodworking, are expecting annual increases of between 25 nercent nnd 50 nperent. 50. Tn the absence of a ny other known major faqctors it i nrobnable that the failure of demand to reach the figures forecast by the consultants has been largely due to a "wait and see" attitude on the part of the residentilq' and commercial communities, particularly in regard to the possibility of exchenge control - This may be a transient phese and the notieenble increas,e in confidence in the past year has been reflected in an 8 percent increase ln lls- d9rir-nig 1Q6 as conmpredt9 with onlyr 2 nerpent inQ 1965. m51.uTe AD.-T at the reques+ of the Y.enya Go(n rnwen4 has1 recently com= missioned from their consultants a "National Power Development Plan 1966-1986." MI__s plar, 4s now in -rprto 4dfnlcnlsoshv o e endan Nevertheless, it can be said that the previous forecast of demand has been revised and tentati ve fig s ( l 4 on are sho-.~---wn n - T Ia 7. These may well prove to be unduly pessimistic, but they are a reasonable basis on which to plan at this stage. Capital Progra-m 52. The developiiient plan prepared by the cons-tultaLls for the period 1966-1986, outlines the following sequence of developments for Kenya in the seven years 1967-1973. Year of Installed Commissioning D-Leip t VtJfit.1 n UC4JULL uy P1Wy 1968 First Stage Seven Forks 'h-ydro- electric project at Kindaruma 4o 1970 Gas turbine at Nairobi 15 1971 Additional steam unit at Ivombasa 30 1971 132-kv Transmission Mombasa-Nairobi - 1973 Additional steam unit at Mombasa 30 1974 Gas turbine for peaking at Mombasa 15 1975 Additional unit at Kindaruma 20 The above developments would be followed by development of the major stages of Seven Forks in the period, 1975-1980. The above plan is still subject to alteration in the light of studies still in progress by the consultants and is based on the assumption that Kenya will continue to import 30 MW from Uganda. Any major change in the Bulk Supply Agreemrent with Uganda would probably require a radical revision of the whole development program with more emphasis on hydroelectric development. 53. The Kindaruma project now under construction by the TRDC has only very limited water storage because the ComDany intends to provide major storage at more suitable sites upstream in later stages of the Seven Forks project. Until these later stages are built, Kindaruma can only operate as a run--of-river project with limitedl pondage and great:Ly reduced firm capability in a dry year. Moreover, as soon as the first 20 MWI unit is commissioned at Kindaruma at the end of 1967 or early 1968, the KPC is obliged to reduce its agreed maximum permitted import from Uganda from the present 45 MW, to 30 MW. In a severe dry season, therefore, the Kindaruma project will contribute little or nothing to the firm capability of the system until upstream storage has been provided, and with the reduction in the Uganda bulk supply, it may even reduce the capability of the system. However, once upstream storage is provided, Kindaruma will have a firm capability of 60 MW, as the additional water will justify addition of another 20 MW machine. Any new circumstances, therefore, which would justify provision of upstream storage at an early date, would be in the general interests of the Kenya supply industry. 54. It is probable that in fact such a new circumstance justifying the provision of upstream storage already exists and will continue to exist for most of 1967, but it is not likely to exist again for perhaps twenty years or so thereafter. The new circumstance is the desire of the Uganda Electricity Board to defer expenditure on another major hydroelectric project on the Nile at. Bulugali and to enter into sone form of cooneration with Kenya over the joint development of major power resources in the two countries (see paragraphs 55. In the absence of any fir decision at this stage to enter into - 13 - nnnnperntinn with- TTganenda,i th Ker.a nr%mpnnniact planrs for rl riln-nrm.nt of Tnaidor projects in the next four years, 1967-70, will probably be based on the sequence shown in paragraph 52 above. Other capital developments in the category of generating equipment in the period include additions to existing isolated dles~el stations a. minor undertakings such as Meru, -nd provision of diesel generating stations at the new sub-economic undertakings of Boma Bay, Lamu, Kajiado, Isiolo, Voi, Kisii a-d Naok. Of these sub-economic developments, only Homa Bay and Lamu are authorized at present. Other capital expenditure ^ o+on tr cn mi si;o n an A-;4r I-, | 4 -- . - - - A_ :1 4 . -* 4~ - A V-'~* '~* l i 'LL WliDU4 .J. LU.U±LV1I LO ILLO±.L.JII dALUU UjiU U. 1 . ..L L V LIUiL1 .U reconstruction of existing mains, extensions to new consumers and provision of AUl st-rlbutl,- on systems ln the sub-economic urlde-d«kngs m.r,loe above.- 1 'L - Ui LU ±Vu± LI u.uiu ii uiie ~UU-tUUL1UiLu±c UlltILUA±bW'11t~b uieuuioL,Le1tU CL.uvv::. 56. Estimated capital expenditure in the four-year period, i967-70, is 14,197,000,/ of which about E9,130,000 (approximately $25.5 million) woulcL be foreign exchange. So f-ar, only 25,597,000 2J (approximately $15.6 million) of foreign exchange has been found and the balance of 1f3,533,000 or about $9.9 million has still to be raised. Assistance in financing the foreign exchange element of the Mombasa steam station extension and the Nairobi/Mombasa line would just about cover the balance required to complete the program. Tables 9 and 10 show respectively the estimated capital expenditure for the four years, 1966-70, and the sources of funds. Future Strategy 57. There are no known deposits of fossil fuels in Kenya and the cost of transporting fuel or transmitting large amounts of energy over the 300 miles separating the Coast from Nairobi and the Kenya highlands, where by far the majority of the population is resident, makes thermal generation expensive. Nuclear power at the present stage of development of Kenya and the nuclear power industry could not be justified on economic grounds within the next twenty years or more. There is, however, a great hydroelectric potential in the Tana River which drains the Mount Kenya and Aberdare mountain ranges. Some of the known potential projects totaling 1,000 MW are shown on the map attached to this report. All of these are situated within a reasonable distance of the main load center of Nairobi. 58. It is not possible to comment in detail at this stage on Kenya's development strategy since old plans are now being reviewed and a new strategy is in process of development. Some generalizations can however be made, which ought to be taken into consideration in formulating new plans. 59. It is clearly in Kenya's interest to make the best use of its only known natural resource in the field of energy. This is the hydroelectric potential of the Tana River. Not only would this make Kenya independent of overseas sources for its energy supplies, with consequent savings in foreigrn exchange, but in the long run it is likely to provide the cheapest source oi energy and, at the same time, enhance the potential for agricultural develop- ment in the lower Tana basin. It will also provide employment and development 1/ Since revised to S14 ,84o0,ooo. 2/ This includes the CDC loan referred to in Para. 37(i). - 14 - of new skills for many Kenyans. M4ost hydroelectric development is costly in the initial stages and the full benefits are not reaped until projects are fully loaded. It is therefore an advantage to load such projects to their full capacity as quickly as possible. This is not easy in Kenya with its present relatively low load base and growth rate. However, there is an opportunity during the next ten to twelve months to double the load base through a joint power development program with Uganda. 6o. Uganda has a similar problem in developing its hvdro potential on the Nile. Its demand is now only a little less than Kenya's but the growth rate is a little higher. It is now faced with the need to provide additional generating facilities and the capital cost of doing so will impose a heavy burden of capital charges on electricity consumers until the project can be fully loaded, which may take eight to ten years from the date of commissioning. 61. If Kenya and Uganda could agree to join forces and share the cost of developing their hydroelectric resources, both countries would benefit from the reduction in power costs which would result from the doubling of the rate at which projects would be loaded. In that event, their capital commitments would also be halved. Mloreover, it would justify a closer examination of some larger and possibly more attractive projects in both countries which have so far been excluded from detailed consideration on account of their large size. Coopera- tion on these lines would be facilitated by the existence of the Tororo/Nairobi bulk supply lines wnich for some years, with minor modifications at the termi- nals, is probably all that would be required for a two-way exchange of power. Moreover, the fac-t that both countries have several comparable hydroelectric projects for development should mean that neither country will become unduly dependent on the other for its supplies of power. 62. Cooperation in its simplest form could be achieved by the creation of a joint authority for all major generation and transmission in the two countries. In Kenya, the only assets which the new authority would need to take over are those of the TRDC and KPC which could be acquired by the Kenya Government by purchase of the other interests' shareholdings. However, if cooperation in this form is not acceptable to the two Governments at the present stage, it is probable that some looser form of cooperation could be devised to bring about substantial (though probably not as great) savings to both countries. 63. Whqtever nolitical difficulties may or may not exist in Kenya and Uganda in the way of the type of cooperation suggested here, there can be no doubt that, at this nnint in the dfevelopment of both countries, substantiWi economic advantages would accrue from cooperation. The establishment of a com-mittee to ex-lore the possibilities- and vlaerh eeit,uis in Yno way committing any of the parties to future action, would at least ensure that ariy su-bsequent decisions are aewt- nweg ftefcs + A T. T . a 4_ T T A A .A + I 1-l A 1 o A 4- 1c n 4 + A c -_ + .. U4 . DUs:Ube UI Ud IUUd mus-1 re acU.a dJsJ on whSthe S1. Sproce ed L ornol)u Wi UWI the building of its next station on the Nile by the end of 1967 or early in 1968, it is essential 4that4 4the question of cooperation lbe resolve' w 4-i-thin4 I-e J;FUU, _I U 1 ~d1UL d.L LIlidi., LI11 ~ 4 Ud UIUI 41. .))J1dUL1 e I L Vu _ WIl UI IL Uji next twelve months. If a decision is not reached within this period, the opportunrit-y- is unlik-.el y to arise again withinl the next twenty years or more, and both countries may be obliged to commit very much larger sums to electrical developmenytt in thIe IifUiled Uatt IULUr UE u11:1i WUulU ULLISWILbte UCU - 15 - 65. Aside from the question of cooperation with Uganda, there is a need to coordinate the plans for hydroelectric development in the middle reaches of the Tana River and irrigation in the lower Tana basin. For some years now, the Government of Kenya has been employing consultants to investigate the potential for irrigation in the lower Tana basin. The final report of the consultants was to be made in May 1967, and though no conclusions have yet been published, such information as is available indicates the need for the closest cooperation between the power and irrigation authorities in the matter of provision of major water storage dams in the middle or upper reaches of the river. The problem is undoubtedly complicated by the difficulty of assessing the benefits that are likely to flow from irrigation given the problems involved in develop- ing profitable patterns of irrigated agriculture. 66. In considering future strategy, the question arises as to whether in the prevailing circumstances private enterprise can continue to find the increasingly large amounts of capital which are reauired for future develop-. ments, and if not, whether the present representation on the Boards of the companies and the controls on dividends and electricity rates, etc. are adecuate for the Government's purpose, having regard to the manifest benefits which can be obtained from allowing private enterprise to continue running what is essentially a commercial operation. To assist the Government in formulatin; its nolicv with regard to these question5 it han anpninted a committee to look into and report upon the advantages and disadvantages to be obtained from cnmuiSition nf the companies by the Government. Table 1: THE EAST AFRlCAN POWER & LIOHTINS COrTIA?Y LIMITED: MAXIMUM DEMANDS, 1950-65 (in rqw) 1950 L951 19,2 1953 195), 19S 956 17 1955 1959 1960 196L 1962 1963 19616 1965 Nairobi & West Kenya ( 21.2% Average Annual increase % (9.3% Nairobi & West Kenya 16.50 113.40 20.91 25.76 31.30 33.96 36.10 38.58 39.90 47?.77 50.30 54.70 57.28 57,63 63.12 62.62 Nakuru 0.98 1.15 1.24 1.65 1.67 2.01 2.11l 2.22 2.30 Kisurnu 0.45 0.59 0.68 o.86 0.96 1.08 1.22 1.22 3.22 1.20 Eldoret 0.71 0.73 0.73 0.78 0.79 0.86 0.91 0.9)6 o.96 1.00 1.08 1.06 1.08 1.08 Nyeri. - - - - .96 0.96 0.95 o.86 0.93 Kitale 0.20 0.22 0.30 0.34 0.37 0.42 0.0h6 0.50 0.52 0.55 0.50 0.53 0.55 0.58 0.50 0.53 Nanyuki 0.08 0.09 0.16 0.22 0.35 0.40 0.664 0.64 0.2 0.45 0.48 o.60 0.59 0.57 0.55 0.53 Meru - - - - - - - - - - - 0.07 Coast 3.66 3.84 6.65 5,10 7.38 8.60 9.73 11.23 12.C6 13.61 16.80 14.65 15.34 17.56 19.40 19.80 Coast Average Annual Increase % ( 13.9% TotalL All Areas 20.58 25.02 28.67 36.51 62.82 647.33 51.00 55.13 57.:37 66 .58 72.12 72.50 75.79 78.28 84.50 83.55 AU Areas ( 20.1% ) ( 9.0% ) ( 3% Average Annual Increase % 9.8% Source: The East African Power & Lighting Co. Ltd. Table 2: THE EAST AFRICAN POWER AND LIGHTING COMPANiY LIMITED: SALE,S OF ELECTRICAL ENERGY 1950-65 (In milLions of KWH) TARIFF 1950 1951 1952 1953 1954 _ 1955 1J56 195 1958 1959 196C 1961 1962 1963 1964 1965 NAIROBI & WEST KENYA Residential 16.31 22.60 27.93 32.98 38.27 I48.25 51.32 55.318 58.47 61.77 68.LI1 70.99 72.83 74.96 75.96 73.39 Water Heating aLnd Plunmoing 1C.69 12.77 16.61 15.92 21.27 24.70 30.61 35.34 40.63 45.38 51.71 54.43 66.13 66.89 66.17 69.22 Lighting only 4.53 5.37 5.91 6.31 7.52 8.29 9.00 9.03 9.08 9.36 11.68 13.17 3.43 a! 3.61 4.00 4.23 Commercial 7.51 8.91 10.20 11.43 14.07 16.79 19.J7 20.07 21.74 25.55 30.23 32.99 48.96 a/ 51.70 56.43 51.A6 IndclstriaLl Power 22.47 26.57 31.15 41.42 46.36 55.87 59.27 63.31 70.07 83.14 95.05 103.88 99.65 107.57 110.33 115.30 Public Lighting 0.82 0.99 1.09 1.62 3.2?9 4.56 5.06 4.75 5.25 5.38 5.6F 6.''1 6.71 7.06 7.37 7.47 Miscellaneous - - - - - - 1.30 1.,62 1.71 1.70 1.55 1.64 1.69 1.85 TOTAL Na:.robi &t West Kenya 62.33 77.21 92.89 109.68 130.78 154.46 174.73 187.8IJ 2o6.54 231.,20 6)5 203.37 299.26 313.13 321.95 323.42 Average Annual IncreaLse % ( ]1.6% COAST Residential 3.62 4.66 5.9( 6.79 7.49 8.49 9.86 11.05 ]LL.48 LL,,96 12.7, 12.93 13.52 14.08 13.72 13.51 Water Heating and Pumtping 0.48 o.56 1.02 1.50 1.91 2.47 2.86 3-53 3.69 3,,85 4.36 4,46 .18 4.614 4.57 4.60 Lighting only 1.57 1.60 1.83 2.04 2.24 2.1414 2.83 3.11 3.26 3.27 3.83 3.60 1.88 a/ 1.40 1.37 1.80 Cormercial 1.77 1.83 1.94 2.28 2.47 2.64 2.97 3.28 3.58 4.40 5.09 5.61 7.21 a/ 10.43 11.57 12.24 Industrial Power 'i.66 5.20 7.35 7.98 13.72 20.33 25.17 28.55 33.74 41,.08 44.4LI 45.78 46.26 48.00 71.04 77.47 Public Lighting 0.12 0.15 0.17 0.24 0.80 0.42 0.47 0.52 0.72 0,,70 0.76 0.80 0.83 0.87 0.94 0.97 Miscel) aneoes - - - - - 0.30 0,32 0.38 0.48 o.86 0.51 0.54 0.56 TOTAL - Coast 13.22 14.C)2 18.21 20.83 28.23 36.79 48.16 50.09 '56.77 65,58 71.17 73.66 74.28 79.93 103.75 110.75 Average Annual Increase % ( 15.25% TOTAL COMPANY SALES Total Sales - All Areas 75.55 91.2'3 111.10 130.51 159.01 191.25 218.89 237.93 26T3.31 296.78 335.66 357.03 373.50 393.36 425.70 8384.17 Average Annual Increase % ( 12.3% ) a/ In 1962, many consumers changed fromn the "lighting only" tariff to the "commercial' tariff to take advantage of a change in the tariff structure,. Source: The East African Power & Lighting Co. Ltd. Table 3 INSTALLED GENERATING PLANT & BULK SUPPLY (EAP&L AND KPC) END-15967 Type of Prime Site Rating Total Station Power Station Movers in KW Capacity in MW. NAl-HDBl & -WEST KENYA EAST AFRICAN POWER & LIGHTING COMPANY LIMITED Nairobi South (Main) Diesel 15,164) n Ht}. Gas Turbine 4,400) ±7.@)u4 Nairobi South (Temporarv) Diesel 3.500 3.500 Ruiru (Nairobi) Diesel) 450) 1950 Hydro ) 1,500) Ndula (Thika) Hydro 2,450 2,450 MESCO (Fort Hall) Hydro 350 350 Nakuru Diesel 4,400 4,1400 Kisumu Diesel l,965 1,965 Eldoret Diesel 1,600o) 1960 Hydro 360)196 KENYA POWER COMPANY Wanji (Fort Hall) Hydro 7,9940 7,940 Tana (Fort Hall) Hydro 15,200 15,200 Bulk Supply (Uganda) - 30,000 _ 30,000 Total Capability Nairobi & West Kenya 92,279 KW risCapu8b'ility (approxdimaiy ) 8,000 r.Lrm eJpL...Ly ~pU.uI~ly) n^AAM A AAA An FeJ- (t-wk.-a JteaMb, hn nr 1o hn r00 Hbaraki (Mombasa) Diesel 6,ooo 6,0000 Mal - 4 Diesil 2140 21.0 Total Capability Coastal Area 146, 2JtO Firm Capability 33,74o Kitale Diesel 1,230 1,230 (930 firm) Nanyuki Diesel 1,1445 1,545 Hydro 100 (845 firm) Mera Diesel 348 348 (246 firm) Source: The East African Power & Lighting Co. Ltd. Table 6: FINANCIAI STATIlITICAL RECORD -F THE EAST AFRICAN Pl WER AND LIHNTING COMPANY LIMITFD a/ 1956 1957 1958 1959 196o 1961 1962 1963 1966 196; Revenue from Sale of Electricity 1 2,183,_3L3 1 2592,902 7 2,81,631 7 :__2__ . - s,l96,292 1, 3,721308 815,91 1 ,081,8 L 6,07,003 6,538,77 Profit for- the year before Taxation 593,834 803,902 796,932 975,062 1,118,722 1,003,239 1,113,791 1,170,4(8 1,169,853 1,192,391 Debenture Stock Rledeemed 81 - - - 81.24 101,066 157,457 170,307 120,033 - 593,83L 803,902 796,932 975,062 1,037,518 9')2,175 956,336 ]1,000,001 1,069,820 1,192,391 Taxation (Net) 49,875 _ 66,68. 65,O0 81,930 8;,361 70,535 150,27 _ 168,603 255,304 313,788 Net Profit after Taxation 51j3,959 737,221 731,922 893,132 952,157 831,640 836,059 831,698 794,516 878,603 Preference Dividends (Gross) 93,000 93,000C 93W222 _ 93,000 96,500 96,500 96,50 96,500 96,500 96,500 Net Profil; attributable to Ordinary Stocklholders 450,959 644,221 638,922 830,132 855,657 735,140 709,555 735,198 698,016 782,103 Orcinary Dividend (Gross) 36°093 39L.37c _ 08,2i7 579,563 60,6L75 6o7,75 _ 607,475 607,LI75 607,320 b/ 607,320 Profit and Reserves Retained 81,8 269,86g5 1, 230,705 1 220,569 1 26 t 127,665 1 102,086 L 127,723 1 90,696 1 174,783 NET CASH FLOW Profit amd Ressrves Retained 81,866 2L9,865 230,705 220,569 268,182 127,665 102,086 127,773 90,696 76,783 !/ Depreciation 39h4799 6424,796 436,' 8 - r70,522 503,655 5.27,023 561 B 58 578,921 607,815 620,807 L L676,665 1 67L0,639 1: 66L,773 T. 69i,D91 1 75) .837 L 65J,688 1 643,666 1 706,666 1 698,511 1 695,590 CAP ITAL EtDffOYED Flixed Assets, Less Depreciation 7,0 1,596 7,509,l97 ',642,633 7,895,160 8.23t3913 8.782,938 9,026,067 ',040,0N0 9,128,960 9,995,556 Subsidiary and Associate Compan ies 3,8(5,518 3,890,4359 3,793,708 3,769,922 3,765,366 3,462,070 3,283,208 3,293,151 669,903 357,058 JLsount outstanding on Sale cf Tangai4yika Subsidiary (after deducting Future Interest) - - - - - - - - 2,613,311 2,292,794 liet Curr-ent Assets i. _ 1,54,09 _ ,725,31 1,736,762 1938,0$8 l,866 1,545,5°C 1,634,433 1.661,698 259,891 r12,663,962 L12.963,0C U1i,161,572 L13,601,864 13,92 317 U40D,969 356,783 U:3.967.67L 13,853,872 12,9Di,299 Firnanced by: Ordinary Stockholders' Interests 6,807,221 7,3D6,51 4 25,3 1 8,' 99,557 9,161,738 9,4626,99L 9,U69,206 762, 3D5 l0,02D,53, 10,292,12o Preference Capital 2,100 0 2,13J,000 2 ,100,3a00 2,100,000 2,150,000 2,150,000 2,150,000 2.150,000 2,150,030 2,150,000 5% Convertible Debenture Stock 1960/69 (Secured) 3,!617,500 3,607,30C0 3,193,70O 2,316,600 2,048,900 . 1,921,309 1,721,3059 1,521,309 1,211,163D Future Taxation Reserve 33'4 385,193 441,931 485,707 573,679 598,666 536,270 53,27 2 463,17 4613,173 L12,663,62 L12,963,030 UL3,161,5;2 L13,601,86, L13,96.9437 1969 13,854,78jL L1,967 671 13,853,872 112,905,299 ORDIIIARY D1CVIDEIID RATES On Issued Capital 719% 8% 8% 10% IO% 10% 10% 10% *% 8% On Capital Employed 2.91% 3.05% 3.10% 4.32% 6.36% 4.31f% .33% .3% 4.36% 4.71% PROFIT fDr the year before Taxation as a Percenitage of Aiverage Capital Employed _.71% 6.28% 6.11% 7.34% 8.18% 7.16% 7.9% 8.41% E.39% 8.91% CAPITAL EXPFNqDIT`JRE L 1,335,040 L 903,893 1 566,228 L 6L4,L2 1 827,011 L 1,036,033 1 751,846 1 550,593 1 C76,619 L 915,615 UNITS SOLD (MILLION3) 220.4 239.6 263.3 297.8 335.8 357.7 373.5, 393.- 425.7 43LI.0 a/ Calendar years b/ On increased capitELl c/ Pension Fund Paymernt, £100,000 Source: Annual Reports of the East African Power & Lightinig Co. Ltd. Table 5: BALANCE SHEET OF THE KENYA POWER COMPANY LIMITED AT DECEMBER 31, 1965 Fixed Assets Land, Building, Transmission Lines, Plant, Machinery and Current Assets Reserve and Equalisation Fund iErketable Securities at cost (Market Value £121,248) 116,993 Short-Term Deposit 10.000 Cash at Bank 3,148 130,141 Stores (less Reserve .I9;.i66) 38 -oo) Sundry Debtors 3,841 Short-Term Deposits 170,000 Cash at Bank 3,007 344.,993 7, 8R33o96 Deduct: Current Liabilities Sundry Creditors and Accrued Charges 14,710 Tinterest Accru,edc n 1 51/0 prcent Denture O+c 1 0o,/RC 5R 7 01.7 £7,737,149 Capital katjhOrioeu dard IUsosuedl 100 Shares of Shs. 20/- each, fully paid 100 Capital Reserve Transfer from Reserve and Equalisation FUnd Account, being Appropriation for Capital Expenditure approved by the Authorised Distributor 65,767 Revenue Reserve Reserve and Ecualisation Fund Account Balance as at 31st December, 1964 168,665 Allocated 1965 22,500 Interest on Investments 4,743 Less: Transferred to Capital Reserve as above 65,767 130,141 Debenture Stock Sinking Fund Ralance as at ilst nfecember. 196li 1. b25 .926 Allocated 1965 191,683 Discount on Stock Redeemed during year 57,979 1,675,588 Loan Capital 5-1/2 percent Debenture Stock 1975/85(Secured) 7,500,000 Less: Redeemed 1,634,447 5,865,553 £7,737,149 Source: Annual Report of the Kenya Power Company. Taale 6: INCOIE AND EXPNT4DIT7uPTM Arl0rTT" OFI MUM =NYTA POwRM -Orn- IIE -" '~ ~'Wi '.~ iI7E~IU~i'41Jir'n mu UU1vUA I1 L-L11Ii f 1J wnR T=. yr.AR ENDTnTDT nvTYm'CE ,1, -I 96 Expenditure: L Generation 91,062 £A.LLUU U ),) I LU Lii.;1aO:U -LI IJ)ULLLM "LV,UJ77 Distribution 7L,181 (less: Interest Receivable, etc.L6,155) 27,766 Ruditor , ,,eration 287 Directors' Remuneration h,200 615,595 Debenture Stock Interest 326,224 Debenture Stock Sinking Fund 191,683 Reserve and Equalization Fund 22,500 Stores Depreciation Reserve 2,859 5h3,266 Ascertained Cost 1,158,861 Income, being actual price charged to the Authorized Distributor 1,158,861 NuTE: T a--'ve AccountI is WIWI Ith UVepc toL the ag ree U Cost of 3 472,9 k-WU of Electrical Energy supplied to the Authorized Distributor, The East African Power and Lighting Company, LiMited, computed in accordance -with the Nairobi and Western Kenya (Bulk Supply) Agreement, 1955 and Bulk M - - Ti I,T- ') -V .P 4j. . T.~. - - ' niff 4-4..,. 4 - ~ - - - +-41 QUpJjply LlUene 1NV. 2 Uo. U8IL UJWI, 1L79.5), 1UOL.inG Iin a price to the Authorized Distributor of 6.9503 cents per kwh. Source: Annual Report of the Kenya Power Company. Table 7: T8E EAST AFNICAN POOWER AND LIC8TING COA Y LI90TED: ESTIMATE OF KWH SENT OST, 1962-75 Area 1962 1963 19(41 1965 1966 1967 1968 1969 1970 1971 1972 1973 - 1974 1975 Na-robi 283.2 294.2 3114.2 340.8 373.3 417.0 469.7 532.8 602.3 678.0 760.0 848.0 942.0 1046.0 Noborol 22.5 22.6 24.8 27.6 30.1 33.2 36.7 40.4 44.4 48.6 53.1 57.7 62.5 67.5 KiESna 13.4 15.2 17.7 20.5 24.1 26.7 31.1 36.2 41.7 47.7 514.0 60.7 67.6 74,7 System total 319.1 332.0 356.7 388.9 427.5 276.9 537.5 609.4 688.4 774.3 867.1 966.4 2072.1 1188.2 Actual 366..4 358.6 379.0 386.6 411.0 Coast 83.0 93.9 121.5 150.9 173.8 198.4 226.7 158.8 294.2 332.3 374.8 420.4 469.6 518.7 Actuai 87.9 96.3 119.1 125.8 131.0 Eldoret 5.3 5.7 5.8 6.0 6.4 7.0 7.7 8.5 9.3 10.2 11.1 12.1 13.1 14.1 Kiftolo 2.4 2.6 2.6 2.7 2.8 3.1 3.4 3.8 4.2 4.5 5.9 5.4 5.8 6.3 Nan2nki 2.3 2.3 2.L 2.4 2.5 2.7 2.9 3.2 3.4 3.7 4.0 4.3 4.6 5.0 N-y_ 4.4 4.4 5.3 6.9 7.5 8.2 9.0 10.0 11.0 12.1 13.2 04.3 15.6 i6.8 Total, All Areas 41t.5 440.9 494.3 557.8 620.5 696.3 787.2 893.7 1010.5 1137.1 1275.1 1422.9 1580.8 1749.1 Actool 463.0 470.3 507.0 513.6 20 year develop.e.t pia. forecast 517.0 553.0 595.0 646.0 707.0 781.0 866.0 959.0 7062.0 1174.0 Average arI increase t ( 8-1/25 ) ( 10-3,215 ESTIMATE OF XUIfl4M DEKMAN (All figWs s i Nl) Nairobi 49.oo 40.60 54.50 59.70 65.80 74.80 85.30 97.70 111.40 127.10 144.00 161.o0 181.00 203.00 NaHurk 4.20 h.40 4.80 5.30 5.75 6.32 6.98 7.70 8.45 9826 10 10 1L too 119 C 12.85 7is 2.60 2.90 3.35 3.83 4.49 4.94 5.72 6.65 7.66 8.77 9.94 1l1.15 12.40 13.70 System otal !/ 54.10 56.10 60.70 66.70 73.90 83.50 95.10 108.90 123.80 141.0o 159.20 178.00 199.00 222.50 Actual 57.28 57.67 63.12 62.62 65.92 Coast 11.70 16.50 21.30 26.50 30.80 35.40 40.70 46.90 53.70 61.20 69.50 76.70 88.50 98.60 Actoal 15.34 17.56 19.40 19.80 20.40 Eldoret i.06 1.10 1.11.1 .15 1.3 1.351 1.49 1.1r 1. 1.0O 1.97 2.15 2.33 2.52 2.72 Kitale 0.54 0.57 0.58 0.59 0.62 0.68 0.75 0.83 0.91 0.99 1.08 1.17 1.27 1.37 Nanyuki 0.57 0.55 0.56 0.58 0.61 0.66 0.71 0.77 0.84 0.91 0.99 1.07 1.17 1.25 Ny^ri 0.93 0.94 1.17 1.58 1.71 1.87 2.o6 2.28 2.50 2.75 3.00 3.27 3.54 3.83 Total, All Areas j/ 71.90 75.76 85."4 97.10 108.87 123.46 140.81 161.32 183.55 208.82 235.92 264.54 296.00 330.27 Act-al 75-79 78.28 84.50 83.55 20 year deelopm.ent plan fare-sot 88.0 95.0 104.0 115.0 128.0 143.0 160.0 179.0 200.0 223.0 A..rage ancual i--rease S ( 10% ) ( 11-3A4 ) !/ Th.s. totale alms for 3A diversity btoser. Nairobi, Rift Vallsesay Ny-an Areas Soarce: Ycorn ad SoLollan report dated Feb. 1964 on 'arket for Eleotrioity.' lTab]e 8.j IARGE INDUJSTRIAL CONSUMERS OF ELECTRICITY EXF'ECTED TO BE CONNECTED, 1t967-71 Estimated haxim-m Den,and Estimated Nature of Industry a/ (in kw) kwh a,year Location 1. Caustic Soda 20)00 16,3800,000 Mazeras (Mombasa) 2. Fruit canning 2000 10,000,000 Thika. 3. Pressed steel furniLture ) Woollen goods ) 500 670,000 Limuru 4. Fertilizers lC)00 6,,00,000 Mombasa 5. Sugar 'Factory (Irrigation & Housing) 5'50 1,:150,000 Chemelil (Kisurun) 6. Vegetable canning 1250 2,1430,000 Lugari (Eldoret) a/ With the exception of Nos. 3 and '5, tentative enquiries for supplies have been received, but whether the loads will materialize is not yet certain. Furthermcre, there is a possibility that a. wood pulp mill may app:Ly fir a connection in the Broderick Falls Area, at some time in the period considered. Source: The East African Power & Lighting Co. Ltd. Tab:Le 9 KENYA ELECTRICAL POWER INJ)USTRY (PU'BLIC UTILITIES): ESTIPATED ANNUAL CAPITAL EXPENDITURE, 1966-70 a/ (in E thousandis) _ _ _ _ _ _ _ _ _ _ 1966 1L967 1968 1969 1970 Remarks 1st Stage Seven Forks (Kindaruma o40 NJ) 1,500 3,280 5(0 - - Reinforcement existing Diesel Stations - 6 - 7 - Suxb-Bconomic Government Projects 13 36 31 74 Fature 1lLjor Power Station Development - 600 800 700 £900,000 to cor)lete in 72/73 (60 MW Steam StaLtion bmnrbasa) Total Generation 1,5OO 3,299 1,336 838 774 KindarumaL/Nairobi 132kv Line & Substation 600 200 - - - Miscellaneous H.T. & L.T. Dis-tribultioni 400 1,010 1,2210 1,480 1,870 Nairobi/Mbombasa 132kv Line & Substations - - - 1, 000 1,4o £100,00() to complete in 1971 Total Transmission & Distribut:ion 3L,000 l,210 10 2,48o 3,270 GranLd Total 2,500 4,509 2,3E'6 3318 4 044 Estimatecl Foreign Exchange in above Totals 1,500 2,400 1,3350 2,430 2,950 a/ caiendar Years. NOTES: 1. T'he above program is based on the assumption that there would be no-change in the existing arrangements for imnortingJ 30 1Nlw of power from Uga'ida. 2. As the Power Authorit.es Consultants are at present in the early stages of deve'lopinig a 20-year plan for power development in Kenya anid have not finally established the optimum economic program, the above estimates can only be regarded as tentative. Source, The 7Wst African. Power & Lighting Co. Ltd. and Balifour Beatty & Co. Ltd. r a'b 'L eIt. n rVTVA 'T VrlPDT(' AT Dfl,.TD TTflTTQn'DV t DTTDT T(' TTmTT Tr'TTV; N . .JOU4 .. J Av"A1±f .LnJ ki L r l \ UL X'.fL U.LLJ..L1J ±1;.J J i MiTTMATEM CAPTTAT. EVPYNTTTJRV2 R, SOTRCTS 0F FITNM- 1 QA6-70 t/ (in L thousands) i966 1967 1968 1969 1970 Investment Foreign Exchange 1,500 2,400 1,350 2,430 2,950 Local Currency 1,000 2,109 976 888 1,094 Total 2,500 4,509 2,326 3,318 4,044 Cash brought forward 450 Nil 644 96 Nil Annual Surplus 170 470 200 450 650 Depreciation 620 640 700 740 780 Capital Contributions 20 20 20 30 30 rw ro m _ 1 r _ s ~~~~~~~~~~~/ ,.0 -O rOr rO Resources Sale, TanganylKa Company b/ 30 350 350 350 350 CAD LYoLan c/ 438. 2,6 - _ Suppliers' Credits 500 1,047 - - - Balance d/ Nil (644) ( 96) 1,644 2,226 TOTAL 2,500 4,509 2,326 3,318 4,044 Foreign Exchange obtained 1,240 4,023 858 358 358 Additona 4-eg --- R ul..--,. / 260 (1 ,23)' 1.049 2 2,07'2 2,5 9O2 JL UU4. 4-.LUI .4L V VI U.LL I, Ila A'16 .1 I LV q U." 1 U U/ Gu47'- '-,'-'1'- -~ a! Calendar Years b/ Payment being received over 12 years c/ 1-1/4% above U.K. Bank Rate on a 20-year loan for Kindaruma Project d/ ( ) indicates Surplus Solrce Poission estimate basCe.Ld on n sformation supplied by MIe Cos A.ritd. Power es Lighting Co. Ltd. and Mlessrs. Balfour Beatty & Co. Ltd. THE EAST AFRICAN POWER a LIGHTING CO., LTD. iN STALLATIONS 3IN KENYA a POSS'BLE HYDRO-ELECTR'IC DEVELOFMENTS : / V 0 < --. E r H / o P / A : 0 ° tRUD O ' F ' -_,-,/ I~~~~~~~~~~~~~~~~~~~~~~~~. .- S -,. ~~'LA IE *)\ ' S \ j /,/'~~~~~~~~~~~~~~~~~~~~~S \ ( a ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~El Wck | ( k U o~~~~~~~~~~~~~~~~~~~~~~Mcrs.bit 0 7~~~~~~~~~~~~~~~~~~~~~~ T-o ' f- D\oEi d ~ ~ ~ ~ ~ 100 b17Eo n t / KIT4LEoMorolo j I ,/'X' Ny \\ [ ~I " ,_- K.. ~ ~ ~ ~~~~ i { f~~ ~~~ Sio > N.2T o s ns/ p U MKny L~~~I i -,sA KISUMU o to >2) Z~~~~KERICHO NAUUb11 ){ 7 oOG,80WvGrs°! ^ Ok ! sfJ Homo Bcy O / XJ / ' NNoivo E m b>>SKIAMBERE, 30LMW S u j5 \ W!.!i ChC, , AldTioson A TUK e M . KeSyo NPRM SOWUdrNnrltin Honso BOY 0 ~~~~~~~~~~ ~~ NDARUMA30W TNTTIOI KS,28OMW -v 9n 'N.\ NAIO N.-prN KilIm0n1oro * EXISTING hYDRO STATIONS %` ;MALIN 0 0 PROJELTED 'TIDRO STATIONS MALhI ' * EXISTING T,iT'RMAL STATIONS 1 , ETISITTNO lkASNSISSIO. tLINES 1, ' _ _ _ PROJECTED TRAllSMISSION LINES N ' * i '/ HI4II4-4I I' EXISTING RAIL.AYS - I~~~~~~~~~ O 20 40 60 so 100 N MILES ' MiARC. 1967 lofT-INST