Construction of Menengai Geothermal plants to begin by September

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Construction of power plants at the Menengai Geothermal Project in Nakuru County is set to begin by September this year following the entry of an Independent Power Producer.

Quantum Power East Africa becomes the first IPP to go into generation of 35 megawatts of power after a financing agreement with the African Development Bank.

The African Development Bank is a key financier of the Menengai Geothermal Project at a cost of Ksh 12 billion.

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The first phase of the project is taking shape with Quantum Power East Africa- the first out of three Independent Power Producers set to begin operations by September 2018.

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The bank is funding Quantum Power East Africa to the tune of Ksh 4 billion for the construction of a power plant that will generate 35 MW.

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Under a partial risk guarantee instrument provided by the African Development Fund, a commercial bank to be selected is expected to issue Letters of Credit to the three companies; Quantam Power East Africa Limited, OrPower22 and Sosian Menengai in order to shield the IPPs from risks such as lack of market for the generated electricity as well as political threats.

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All the three IPPs for the Menengai Project are expected to generate a cumulative of 105 MW.

The companies have already signed Project Implementation and Steam Supply Agreements with GDC as well as a Power Purchase Agreement with Kenya Power for 105MW of power.

The power plants are projected to offer service for a period of 25 years.

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