- Financial close has been reached for the USD 117 million financing to Globeleq by the African Development Bank (AfDB) as mandated lead arranger (MLA), the Eastern and Southern African Trade & Development Bank (TDB), and Finnfund, for the 35MW Menengai geothermal plant in Nakuru, Kenya.
This greenfield geothermal project broke ground earlier this year, and is part of the first phase of the wider Menengai complex, Kenya’s second largest geothermal field currently being developed.Globeleq, a leading independent power company in Africa which is owned 70% by British International Investment and 30% by Norfund, is providing equity, project development and construction management experience.
The project is expected to reach commercial operations in 2025. Afterwards, Globeleq will operate and maintain the power plant which will feed directly into the national grid. This will contribute to enhancing Kenya’s energy supply and security through a source of renewable energy – in line with the country’s Vision 2030.
Steam will be supplied to the project by Geothermal Development Company (GDC), a Kenya government-owned company under a 25-year project implementation and steam supply agreement. Once operational, electricity will be sold to Kenya Power, the national distribution company, under a power purchase agreement for the same timeframe.
In addition to supporting local suppliers and communities which stand to benefit from increased trade and other economic activities, about 200 job opportunities are expected to be created for local workers during construction, with 35-40 jobs for both permanent staff and contractors once operational.
Author: Bryan Groenendaal
