KenGen Guarantee Program (WB-P162422)

Countries
  • Kenya
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
C
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
Apr 26, 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.
Borrower
KENGEN
The holder of the loan, grant, or other investment.
Sectors
  • Energy
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 180.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 180.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 27, 2019

Disclosed by Bank Jan 18, 2018


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Project Description

The development objective of KenGen Guarantee Project for Kenya is to enhance KenGen’s ability to attract long-term private capital for the sustainable development of renewable energy. This project is an application of the World Bank Group’s Maximizing Finance for Development (MFD) approach. It is classified as both an MFD-implementing and MFD-enabling project as it will use scarce International Development Association (IDA) resources to mobilize private sector financing to strengthen the financial position of Kenya’s main power generation utility Kenya Electricity Generation Company Limited (KenGen) and set it on the path of financial sustainability. This is key for Kenya to create the enabling environment to attract long-term private investments for the sustainable development of renewable energy. Through this IDA Guarantee, the project will support a financial transaction for KenGen, refinancing existing commercial loans of shorter tenor and higher interest rates with a new commercial loan of longer tenor and lower interest rates,thus generating savings for the company. This is a corporate debt restructuring operation.

Investment Description
  • World Bank (WB)
Contact Information
Kenya Electricity Generating Company (KenGen)
Mrs. Rebecca Miano
rmiano@kengen.co.ke

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.