World Bank invests in Kenya power projects
By Sarah Ann McCay30 August 2012
Four private power projects in Kenya are to receive funding up to US$ 400 million from the World Bank as the country works towards expanding electricity access to 40% of the population from the current rate of 30%.
The four projects - Thika Power, Triumph Generating Company, Gulf Power, and the expansion of Or Power 4 geothermal project - will increase Kenya's electricity generation capacity by 285 MW.
Various agreements for the first project, Thika Power, have been signed between the Government, Kenya Power, Citibank and the World Bank. The project will add 87 MW of capacity and the electricity it will produce will be purchased and distributed by Kenya Power.
The investment is supported by the Kenya Private Sector Power Generation Support Project, which will provide a series of Partial Risk Guarantees (PRG) of US$ 166 million from the World Bank's International Development Association (IDA).
These PRGs are expected to leverage private investments of almost US$ 400 million in Thika Power and the three other private power generation projects.
The Kenyan government hopes to increase private sector participation in the energy sector and encourage the use of low carbon resources such as wind and geothermal to increase electricity generation capacity by an additional 2,000 MW in the medium term.