Kenya signs PPP project for Lake Turkana wind project
The Kenyan National Treasury has signed the public private partnership (PPP) for the development of the 310 MW Lake Turkana Wind Power project in northern Kenya.
The project is located in an area covering 40,000 acres (162km squared) in Loiyangalani district, North-Eastern Kenya. The project involves the development of 365 wind turbines, an associated, overhead electric grid collection system and a high voltage substation. The project also includes upgrading of the existing road from Laisamis to the wind farm site, a distance of approximately 204 km, as well as an access road network in and around the site for construction, operations and maintenance.
The project cost is estimated at €623 million (US$774.5 million) of which senior debt accounts for 70%, subordinated debt another 10% and equity the remaining 20%. The lenders supporting the project include: African Development Bank (AfDB), European Investment Bank (EIB), Standard Bank of South Africa, Nedbank, FMO, Proparco, East African Development Bank, PTA Bank, EKF, Triodos, DEG.
The Government of the Netherlands is also supporting the project with a grant of €10 million and the European Union is providing a subsidized facility of €25 million through the EU Africa Infrastructure Trust Fund.
UK-based Aldwych International is the lead developer and will also oversee construction and operate the plant. Vestas is supplying 365 of its 850kW V52 turbines, with the first power scheduled to come online early 2016. The power produced will be bought at a fixed price by Kenya Power (KPLC) over a 20-year period in accordance with a Power Purchase Agreement (PPA).
The Kenya Electricity Transmission Company Ltd (Ketraco), with concessional funding from the Spanish Government, is constructing a double circuit 400 kv, 428 km transmission line to deliver the LTWP electricity along with power from other future plants to the national grid.
In June this year the Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, approved an investment guaranty of up to US$250 million to support the project.
