SPONSORS

SPONSORS

Turkana Wind Power Project in Kenya to be Africa’s largest

PROGRAM/PROJECT NEWS 

23 September 2013 – Abidjan, Côte d’Ivoire  and Nairobi, Kenya – The African Development Bank (AfDB) is supporting the Turkana Wind Power Project in Kenya, which will add 300MW to power generation capacity and will provide clean and affordable energy that will reduce the overall energy cost to end consumers. Furthermore, the project will allow the landlocked Great Rift Valley region to be connected to the rest of the country through the improved infrastructure linked to the wind farm, including a road, fibre-optic cable and electrification.

130923-pmwj15-kenya-IMAGEThis zero-emission project will contribute in filling the energy gap in the country, enhancing energy diversification and saving 16 million tons of CO2 emission compared to a fossil fuel fired power plant.

The total project cost is €585 million. This will be financed with equity (25%), mezzanine debt (5%) and senior debt (70%). The senior debt will be made up of a Development Finance Institutions tranche arranged by the AfDB Group for €309 million and a commercial debt tranche of €100 million.

Turkana Wind Farm will be the largest wind power project in Africa. The AfDB Group, which provided a €115-million loan to the project, has taken a lead role in developing this project, having worked with the project developer since 2009, and is the Mandated Lead Arranger for the transaction. Spearheading the project’s transactions, the AfDB Group built the confidence of potential investors on mitigation of environmental and governance risks, ultimately attracting additional investors in the project such as commercial banks. As the Mandated Lead Arranger for the project, the AfDB Group will raise over €127 million in senior debt and a further €58 million of subordinated debt.

In addition, the AfDB Group is processing an ADF Partial Risk Guarantee for €20 million to cover the risk related to the completion of the transmission line, which is crucial for the project.  For more abut AfDB projects in Kenya, visit http://www.afdb.org/en/countries/east-africa/kenya/

The African Development Bank (AfDB) is a regional multilateral development finance institution established in 1964 to mobilize resources towards the economic and social progress of its Regional Member Countries. Headquartered in Abidjan, Côte d’Ivoire, the Bank promotes economic and social development in African states, providing financing for programs and projects across the continent.  For more information, visit www.adbg.org.

Source: African Development Bank