GDC to start drilling at Silali in April 2013
Geothermal Development Company reports it will start drilling of seven geothermal wells at Silali, Kenya in April 2013 with a total of $400 million loans from U.S. Exim Bank and German KfW.
Local news report that GC plans to start the drilling of seven geothermal wells in the Bogoria/ Silali area in April this year.
This is the first step in the diversification of geothermal development in Kenya outside the Menengai and Olkaria geothermal fields.
GDC reports it has received $400 million, of which $300 million are from U.S. Export-Import Bank (Exim Bank) and $100 million from German development bank KfW.
The drilling will take place at seven fields, at Bogoria, Azuri, Baringo, Korosi, Silali, Lipaka and Chepchuk.
“It has so far drilled eight wells in Menengai, five of which are generating 40 megawatts (MW) of power, under $600 million (Sh51 billion) loans and grants from the African Development Bank (AfDB) and the French Development Agency (AFD). The wells were underwritten by the World Bank.
The new loans, with a grace period of 10 years and a tenor of 40 years, will translate into lower investment per unit, affording cheaper industrial and household power.
GDC managing director Silas Simiyu said Marine Power Generation (MPG) Company Ltd, a private investor, is also about to start drilling near Akiira Ranch, Mlima Panya and Mount Margaret in Suswa.”
Source: Business Daily Africa