News

KenGen seeking US$920 for geothermal development

Olkaria III geothermal power plant, not operated by KenGen (source: Emerging Africa Fund)
Alexander Richter 30 Mar 2010

Kenya Electricity Generating Co., the east African nation’s biggest power producer, is seeking $920 million of international loans to build two geothermal power plants.

In news from Kenya it is said that “Kenya Electricity Generating Co., the east African nation’s biggest power producer, is seeking $920 million of international loans to build two geothermal power plants.

Kenya has begun talks with the World Bank, the French Development Agency, the European Investment Bank and German development bank KfW Entwicklungsbank on funding the plants in Olkaria, 120 kilometers northwest of Nairobi, the company said in a statement in the Nairobi-based Daily Nation today. They will have a capacity of about 140 megawatts each.

Kenya Electricity said the government is funding the drilling of wells, estimated to cost $330 million. The first project, Olkaria I, has a $650 million price tag. Japan International Co-operation Agency has agreed to provide $323 million and a loan agreement will be signed tomorrow, Kenya Electricity said.

In the past JICA has provided Kenya Electricity with loans worth 20 billion shillings ($258 million) for hydro and geothermal power projects, it said.”

Source: Business Week