The project involves construction of a 70MWe geothermal power plant as an independent power producer (IPP) located outside Naivasha, Kenya, adjacent to the Olkaria geothermal production site. The project is the first phase of a planned 140MWe geothermal development in the Akiira geothermal area.
The project will provide renewable energy to bridge the existing demand gap between potential demand and supply in Kenya. The proposed operation is in line with the strategic objectives set for the external mandates in general (environmental sustainability, climate change mitigation) and the Cotonou Agreement, in particular Article 21 concerning investment and private sector development. The operation will also contribute to the Bank's priority energy lending objectives related to renewable energy. In addition, the 11th European Development Fund (EDF) National Indicative Programme for Kenya (2014-2020) foresees a focus on sustainable infrastructure. Indeed, the project will contribute to poverty reduction (sustainable development goal (SDG) 1) and to inclusive economic growth (SDG 8) by improving access to affordable, reliable, sustainable and modern energy services (SDG 7). It will also contribute towards combatting climate change (SDG 13). Further, the project is fully in line with the country's objectives in Kenya's Second Medium-Term Plan (2013-2017), aimed at implementing Kenya's Vision 2030; it explicitly targets increasing the share of power generated from green sources.
Upon assessment of the project, a decision was made by the EIB to withdraw from the project and to remove it's details from the Bank's website.
The European Investment Bank (EIB) has indicated that it’s preparing a €155 million ($192 million) loan package for the 70MW Akiira Geothermal Project in Naivasha, in Nakuru County, Kenya. The Akiira project has an estimated project cost of EUR 310 million ($380 million) and is being financed through a mix of debt (70%) and equity (30%), according to the executives. Centum Investments owns a 37.5% equity stake in the Akiira consortium, with the remaining 62.5% owned by American firms Ram Energy, Marine Power, and Danish company, Frontier Markets.The Centum consortium is expected to contribute 30% of the project’s cost of $380 million while the rest will be funded through commercial loans.
Marine Power Generation (MPG) are the holders of the geothermal exploration license and have shares in AGL. Ram Energy is the company with technical expertise in geothermal development and also have a stake in AGL. The two main financial investors are Mvuke Power Limited (wholly owned by Centum Investments Company Ltd – CICL) and Frontier Akiira Holding Company Ltd. (owned by Frontier Investments).
Centum Investments owns a 37.5% equity stake in the Akiira consortium, with the remaining 62.5% owned by American firms Ram Energy, Marine Power, and Danish company, Frontier Markets.The Centum consortium is expected to contribute 30% of the project’s cost of $380 million while the rest will be funded through commercial loans.
*Contact information not provided at the time of disclosure*
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