The Kenyan public enterprise Rural Electrification and Renewable Energy Corporation (REREC) wants to use digital technology for its electrification policy through renewable energy. It has just joined forces with SAPAriba, an American software and IT services company. This partnership will enable the REREC to benefit from the digital transformation project under way in Kenya. The initiative is called “Project Platinum”.
Through the digital transformation project, the American company SPA Ariba, in charge of its implementation, will evaluate REREC’s calls for tenders. It will also be in charge of managing the contract life cycle and self-service for the suppliers of REREC. “Companies that succeed in today’s experience economy are those that can combine accurate data with real-time information and exponential technology to make better business decisions. With this latest project, the Rural Electrification and Renewable Energy Corporation can leverage its compliance with national legislation to improve efficiency and overall competitiveness, while delivering a better customer experience for suppliers,” said Pedro Guerreiro, chief executive officer of SAP Ariba.
By partnering with SAP Ariba, REREC is complying with an official directive from Kenyan President Uhuru Kenyatta that all public companies must migrate their tendering systems to electronic platforms. This will allow them to take advantage of new technologies that improve transparency and efficiency.
The beginnings of Project Platinum
In 2018 the Kenyan president unveiled his ambition to significantly increase the share of renewable energy in Kenya’s electricity mix by 2020. This policy should enable the country to connect 60% of its population to the electricity network, three times more than in 2018. The initiative has faced many obstacles, including the tendering process for the establishment and maintenance of a new supply system.
In order to reduce costs and keep the project on track, the Rural Electrification and Renewable Energy Corporation (REREC) used a fixed-cost contract. “The contract prevented too many developments from being created outside the standard systems, while automating the business process and using SAP Ariba’s standard best practices as much as possible. It also reduced the bidding time from 60 to 30 days, reduced the bid evaluation time from 90 to 30 days, and reduced the time to complete the bidding process to a maximum of 30 days,” explains Peter Mbugua, CEO of REREC. These initiatives enabled the digital transformation project to finally be launched in Kenya.
Kenya is one of the leaders in the field of renewable energy in Africa, with more than 70% of the country’s electricity production coming from geothermal energy in particular.