IFC considers investing in wind project in Kenya

The International Finance Corporation (World Bank) has disclosed on its website that it is considering financing the Kipeto Wind Project in Kenya.

The Kipeto Wind Project consists of the construction and operation of a greenfield 100MW wind farm in the Maasai land, approximately 70km southwest of Nairobi.

The project is comprised of 60 WTG of 1.7MW each, with a hub height of 80 meters and blade diameter of 103m. The turbines will be supplied by General Electric. The site will be located on a 70km2 land area situated at 2,000m altitude within the Esilanke area, leased from mostly local landowners and currently used for agricultural purposes.

Total project costs are estimated at circa US$ 316 million. The proposed IFC investment includes an equity investment in Kipeto Energy Limited (KEL), the SPV of the project, of approximately US$ 20.5 million (including the funding of Kipeto Trust’s free carry, pro rata with AIIM), for IFC’s own account.

The shareholders will be funds advised and managed by African Infrastructure Investment Managers (AIIM) (holding 55%), Craftskills Wind Energy International Ltd (holding 20%) and IFC (holding 20%). The remaining 5% of the shares will benefit the Kipeto Community Trust (Kipeto Trust).

Craftskills is a Kenyan company established in 2009 by three Kenyan individuals.

AIIM was established in 2000 as a joint venture between the Macquarie Group and South Africa's Old Mutual Investment Group. AIIM’s ownership in KEL will be exercised through the following entities:

• African Infrastructure Fund 2 Mauritius (AIIF2), a sub-fund based in Mauritius and catering to international investors;
• African Infrastructure Investment Fund 2 Partnership (AIIF2P), a South African sub-fund catering to South African investors.

Kipeto will sell its power to the Kenyan offtaker KPLC at a feed-in tariff of US$ 12 cents/kWh under a 20-year PPA.