|Transformer serving this blogger in Migori County, Kenya|
Gulf Power has brought local investors from Gulf Energy Ltd and Noora Power Ltd in the Sh9.12b project which includes Sh2.7b in equity investments and Sh6.4b long-term debt financing.
WB gave the project a major boost through Sh4b loan which will be repaid for more than 15 years.
Already Gulf has signed a power purchase agreement with Kenya Power and Lighting Company (KPLC) for electricity it will generate. The agreement was also signed by the government, WB and JP Morgan Chase Bank N.A. of London.
“The WB has now signed partial risk guarantees for a third private power producer to increase the availability of electricity and diversify country’s power,” Johannes Zutt, World Bank Country Director for Kenya said.
The move will increase stability of supply of electricity to help businesses grow and create jobs for citizens.
The Gulf Power loan approved in February last year is among WB’s loan with other projects benefiting being Thika Power and Triumph Power Generation which were finished on August and December 2012 respectively.
“The loan supports innovative public-private partnership program that helps African countries to unlock their energy potential and improve competitiveness,” Lucio Monari, World Bank Sector Manager for Energy in the Africa Region explained.
The government plans to increase private sector participation and utilize low carbon resources such as wind and geothermal to increase electricity generation capacity by an additional 2,000Mw.
Manuel Odeny © 2013