Regional bank backs Kenya’s largest wind power plant

Kenya edged closer to setting up the largest wind power plant in the region Thursday with the Africa Development Bank providing a guarantee for the construction of a transmission line to take electricity from the planned plant to the national grid network.

The guarantee, according to a statement from AfDB, will mitigate against the risk of a possible failure by the government to meet its obligations to the Lake Turkana Wind Power plan, which could lead to delay, thus affecting private lenders and investors in the project.

The project, an investment of a consortium of international companies, that is expected to generate 300 megawatts of wind electricity that will add to the current 1,600 megawatts on the national grid.

“The partial risk guarantee will support the government’s on-time delivery of the transmission line and will reduce the risk of it being unable to meet payment obligations. More specifically, it will provide partial risk mitigation to Lake Turkana Wind Power Ltd and the providers of debt-financing to the project for risks associated with construction delays,” said AfDB in a statement.

Under the wind power project, the government is obliged to set up a 428km transmission line between Loyangalani and Suswa and associated substations that are needed to connect the wind power plant to the national grid.

The Lake Turkana wind power project has been delayed for more than two years following failure by the investors to secure guarantees from the government and the World Bank.