World Bank Finances Green Energy in Kenya
27 May 2010: The World Bank has approved a US$330 million loan for Kenya to expand electricity access and expand geothermal power generation as part of its green energy development strategy.
The project is part of over US$1.4 billion being invested in the electricity sector by the Kenyan Government, the Bank and other development partners, and will build on prior projects that support geothermal energy development that started in the 1980s. The geothermal generation component will finance the construction of 280 MW of geothermal generation capacity, consisting of: an expansion of the capacity of the existing first Olkaria power station by 140 MW; building a new power station, fourth Olkaria, with a capacity of 140 MW; and connecting steam wells to the two power stations with associated facilities for transmitting the power to the national grid. The component will also finance consulting services for design and supervision, and the installation of construction infrastructure and facilities required to operate the plants.
The other partners in the energy project include the European Investment Bank (EIB), Germany's KfW, Japan International Cooperation Agency (JICA) and the French Development Agency (AFD). The Kenyan Government, Kenya Power and Lighting Company (KPLC) and Kenya Electricity Generating Company (KenGen) will also contribute to the financing of the project. [World Bank Press Release]