The African Development Bank (AfDB) has bagged financing worth €115m for a 300MW wind power project in Lake Turkana region, Kenya, to further the country’s clean energy portfolio.
In addition, AfDB, which has been mandated as the Lead Arranger for the project, will raise nearly €127m in senior debt with €58m of subordinated debt.
The Lake Turkana wind power project comprises construction and operation of the wind farm with 365 turbines of each 850KW capacity.
Meanwhile, the project is being developed by a special purpose vehicle Lake Turkana Wind Power formed by an investors consortium including Kemperman Paardekooper & Partners Africa, Aldwych International, the Investment Fund for Developing Countries of Denmark, Norfund, and Vestas Wind Systems.
Upon the proposal by the government, the bank will provide a partial risk guarantee to the project to secure it against the risk of delays in the construction of the transmission line.
Also, the government of Kenya has committed to construct the 428km transmission line to evacuate power from the project site to the national grid.
For this, the government has secured funds from Spanish Government.
The Lake Turkana project, which is touted to be the largest project in Africa, is expected to reduce the overall energy cost to end consumers.
Besides, the project will connecting landlocked Great Rift Valley region to the rest of the country through the improved infrastructure linked to the wind farm, including a road, fibre-optic cable and electrification.
Once operational, the project is estimated to reduce 16,000,000 tons of carbon dioxide emissions per annum.
