News

16 firms chosen by KenGen for 280 MW Olkaria development

45 MW Olkaria I geothermal power plant, Kenya (source: bgr.bund.de)
Alexander Richter 5 Mar 2013

KenGen has chose 15 international firms and one firm from Kenya for the development of additional 280 MW development at Olkaria, Kenya.

KenGen has chose 16 companies, among them one from Kenya, to spearhead the initial construction of the Sh82.5 billion ($918 million) geothermal power plants at the geothermal field of Olkaria.

The following companies “passed the evaluation and qualified for the investment venture that will lead to the construciton of additional 280 MW of geothermal power generation capacity at Olkaria”, so Eddy Njoroge the outgoing managing director of KenGen.

Seven of the firms qualified under the energy conversion agreement, four won the bid under the venture and energy conversion agreement and five qualified under both arrangements.

The companies that have qualified are:

TransCentury (Kenya) joining Daewoo International (South Korea), Copperbelt Energy Consortium (Zambia), and Sumitomo (Japan).

Kansai Electric Power (Kepco), Mitsubishi Corp., Toyota Tsusho and Mitsui (all Japan) join Sithe Global Consortium (U.S.), Zorlu (Turkey) and the pan-African Consortium of Africa Finance Corp.

Tata Power (India), Ormat (Israel), Marubeni (Japan), Sjitz (Japan) and South African subsidiary of International Power (India).

KenGen will start with one unit and a capacity of 140 MW to be completed next year.

Funding comes from the Kenya Government, World Bank, Development Bank KfW (Germany), the European Investment Bank, Japan International Corporation Agency, French Development Agency AFD and KenGen.

As part of the project Chines Exim Bank has already advanced $386 million to fund the ongoing drilling of 80 wells and KenGen plans to raise additional $350 million in a bond sale.

Source: Daily Nation