Kenya: ADB provides loans and grants of $150m for Menengai project
Menengai Crater, Kenya (source: flickr/ meaduva, creative commons)
Alexander Richter
20 Mar 2012
The African Development Bank and Kenya sign a loan and grants agreement of $150 million to fund development of the Menengai geothermal project in the country.
Signing loan and grant agreements last week, the African Development Bank (AfDB) extends financing totaling some USD 336 million in support of clean energy and road infrastructure development in Kenya.
Part of the package is $149.5 million loan and grant financing for the Menengai Geothermal Development Project.
The loan agreement for the Menengai Geothermal Development Project, consists of an ADF loan of USD 124.5 million, and a loan and grant totaling USD 25 million from the Scaling-Up Renewable Energy Program (SREP) under the Climate Investment Funds for which AfDB Group is an implementing agency.
The Menengai field alone has a potential of up to 1600MW, and the AfDB Group support will help develop the steam field for generation capacity of up to 400MW in a first phase, which is represents a 20 percent increase in installed capacity of the country.
The signing of these agreements totaling USD 336 million brings the ADB’s combined support to Kenya’s Energy and Transport sector close to USD 1.4 billion.”
Source: All Africa
