Thika Power Limited (MIGA-763c7894c1)

  • Kenya
Where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 1, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Azura Power Holdings Limited and/or any of its subsidiaries
The holder of the loan, grant, or other investment.
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Feb 14, 2019

Disclosed by Bank Oct 12, 2018

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Project Description

Actis Energy and Amaya Capital, through Azura Power Holding Limited ("Azura Power" or "the Guarantee Holder") plan to acquire three existing power assets, specifically: Tobene and Kounoune Power Plants in Senegal; and Thika Power Plant in Kenya. All three assets are currently owned by Melec Powergen Inc ("MPG"), which was established in 2005 as a power generation platform in sub-Sahara Africa. The "Project" or "Power Plant" considered in this ESRS comprises Azura Power's acquisition of Thika Power Plant. The Project is an operating heavy fuel oil (HFO) plant with a total capacity of 87MW, located along the Nairobi-Thika highway, 5km from Thika town and approximately 38 km north-east of Nairobi. The Project is currently in the fifth year of full commercial operation and was the first Independent Power Producer (IPP) to be implemented under an initiative to help Kenya move away from its reliance on hydropower.

Construction of the Project commenced in 2011. Interim commercial operations started in August 2013 and full commercial operations was reached in March 2014. The Power Plant is comprised of: a tank farm for various fuel and waste oil storage; an engine room containing five engines (of 16.7 MW capacity each) and one 6.8 MW steam turbine; and various auxiliary and supporting components. MAN Diesel & Turbo provides maintenance and advisory services, as well as spare parts for the Project. Operations and support is provided by local staff contracted by MPG.

The Project has a 20-year power purchase agreement (PPA) signed in 2012 with Kenya Power and Lighting Company (Kenya Power), the national electric utility company. A Kenya Power substation is located adjacent to the plant, to the south.

The Project leases 4 hectares (ha) from Kenya Power and is surrounded by mainly farmland. The nearest community is that of Witeithie Estate to the southeast and is on the other side of the Nairobi- Thika highway. The nearest residences are located about 100 meters (m) from the site boundary to the southeast.

The Project was developed and financed by MPG with 25% equity and 75% long term loans arranged through the International Finance Corporation (IFC). The loan was approved by the IFC Board in 2011. The Project is also one component of a larger International Bank for Reconstruction and Development (IBRD) lending program that supported the creation of three IPP thermal power projects in Kenya, namely Triumph, Gulf and Thika Power Plants. Other Development Finance Institutions (DFIs) involved in the Project include the African Development Bank (AfDB) and Barclays Africa Group ("ABSA") Capital of South Africa. The Project also benefits from an International Development Association (IDA) liquidity guarantee and MIGA termination coverage on the ABSA debt, which combined with IFC long-term financing, optimized the use of the World Bank Group (WBG) instruments. Azura Power is an experienced developer, financier, acquirer and operator of IPPs that focuses on base-load power plants across Africa, and as well as renewable power projects in Nigeria.


Investment Description

Contact Information

No contact information provided at the time of disclosure


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