News

Land deal opens $90m funding for Baringo-Silali project

GDC drilling site at the Menengai crater, Kenya (source: in2eastafrica.net)
Alexander Richter 30 Apr 2016

With a recently concluded land deal with local communities, GDC in Kenya has unlocked funding of $90 million from German development bank KfW for the Baringo-Silali project.

Reported by Kenya’s Geothermal Development Company (GDC), it has signed a land agreement pact with affected communities in the Baringo area thus paving way for the commencement of Phase one of the Baringo-Silali project.

A meeting this morning between GDC’s Managing Director and CEO, Eng. Johnson P. Ole Nchoe, and the KfW Country Director, Dr. Klaus Liebig has reaffirmed that the Baringo-Silali project will commence soon.

“I am happy to report that GDC has signed a land agreement with affected communities thus paving way for completion of a legal opinion to KfW, and the subsequent disbursement of funds for the project,” said Eng. Johnson P. Ole Nchoe.

Speaking during the meeting, the KfW Country Director, Dr. Klaus Liebig noted that “due to the importance of the Baringo-Silali project, KfW deliberately decided to finance exploration drilling which is one of the riskiest phases of geothermal development which, when successful unlocks further financing.”   He added that “we are ready to start the project and we are happy to partner with GDC in this very important project for Kenya, for GDC and for KfW.”

“The Baringo-Silali Project is top on my priority list; having reached an agreement with land owners, we are moving closer to breaking ground,” noted Eng. Ole Nchoe. GDC has already signed a water supply system contract and a drilling services contract. The drilling services contractor, is getting ready for the contract execution. Under the contract, the contractor will drill of 15-20 wells in the Baringo-Silali Block.

KfW, a German government-owned development bank, is financing GDC’s Baringo-Silali geothermal project at a cost of Euro 80 million ($91 million) or approximately Kshs 8 billion.