KenGen looking at public private partnerships for build out
KenGen Olkaria II plant, Kenya (source: constructionkenya.com)
Alexander Richter
23 Nov 2012
KenGen is looking at PPPs to develop 560 MW at Olkaria, with a tender planned to choose companies that would gain a majority share in a JV, with KenGen provide steam and the company to build, own, operate and transfer.
With its ambitious geothermal development plans, Kenya’s KenGen is looking at public-private partnerships to deal with the large finance and investment needs for these planned projects.
The company expects bout $4.5 billion in investment need to develop its planned 1,200 MW geothermal power generation capacity in the Olkaria field.
For 560 MW at Olkaria, to be developed in steps of 140 MW, the company is looking at PPPs for financing.
Companies will be selected through a competitive tendering process, that will then form JVs, with the companies as majority shareholder. KenGen would – under the arrangement – provide steam to build , own, operate and transfer contractor.
Successful bidders would then “be required to design, finance, supply, construct and operate the power plant for 10 to 20 years.”
Interested companies must “have net assets of at least $300 million and demonstrate that they have previously raised funding of at least $100 million for an infrastructure project and a minimum of five years’ experience in developing geothermal power plants.”
Source: Engineering News South Africa
