Nairobi to host US’s Power Africa project

Nairobi will host the regional headquarters of an initiative led by US President Barack Obama to speed up electricity access in African countries.

The Power Africa initiative, which is worth more than Sh600 billion, was launched last year during President Obama’s visit to Africa. Its main mandate is to double access to power in sub-Saharan Africa by focusing on renewable energy.

Speaking during the launch of the initiative in Kenya, the coordinator of Power Africa and Trade Africa, Mr Andrew Herscowitz, said it would be the first time a US presidential initiative will be led from the field. “Kenya is far along in terms of an enabling environment for private sector investment,” Mr Herscowitz said.

The headquarters will be at the US Embassy in Nairobi. The first five-year initiative will see the US government give direct financial and technical assistance to six countries: Kenya and Tanzania, Ghana, Ethiopia, Nigeria and Liberia.

“For the first phase, the US government has committed over Sh602 billion ($7 billion) in financial support and loan guarantees in addition to the coordinated support of other 12 US government agencies for the entire region,” Mr Herscowitz said.

A statement from USAid Power Africa describes Kenya as “the gateway to East Africa.” Kenya’s role as a transportation hub is vital to much of sub-Saharan Africa, it says.

“Kenya is the second most populous country in the region; it has a young, ambitious and well-educated workforce — eager to contribute to development of the country,” reads the introduction in part.

Currently, the Kenyan government, project financiers and Aeolus Kenya Ltd are closing agreements for funding and construction of the Kinangop Wind Park that is expected to generate 60MW.

“We will be working with the government and the private sector to increase the national grid, with much concentration being on renewable energy,” Economic Growth director Mark Carrato said.

In the other five countries, Nigeria, for instance, will see 15 firms buy assets of 10 distribution and five generation units in the initial phase of privatising the power holding company to generate 2000 MW.

Agricultural corridor

In Ethiopia, the Electric Power Corporation has entered into a project agreement with Reykjavik Geothermal to establish the Corbetti Power Plant to generate up to 1000MW.

In Tanzania, Power Africa has approved a loan guarantee for Kiwira River Hydro Project in the country’s agricultural corridor set to produce 10MW.

US ambassador to Kenya Robert Godec said his country through the Overseas Private Investment Corporation has provided up to Sh27 billion ($310 million).

Power Africa’s goals match those of the governments Vision 2030, which aims to put 5000MW on the grid in the next 42 months.