FOR IMMEDIATE RELEASE
Monday 24 March 2014
Left to right: KPLC CEO & Managing Director, Dr.Ben Chumo, LTWP Chairman, Carlo van
Wageningen, Principle Secretary Ministry of Energy & Petroleum, Eng. Joseph Njoronge,
Africa Development Bank Regional Director, Gabriel Negatu, during the signing of a loan
agreement between Lake Turkana Wind Power and African Development Bank on Monday 24
March 2014
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Lake Turkana Wind Power Signs Financing Documents with
African Development Bank and Other Lenders
Monday 24 March 2014, Nairobi, Kenya…. Today, Lake Turkana Wind Power Project (LTWP)
signed the financing documents with African Development Bank (AfDB), European Investment
Bank (EIB), the Standard Bank of South Africa, Nedbank, FMO, Proparco, East African
Development Bank, PTA Bank, EKF, Triodos and DEG, in order for the €623 million (Ksh 76
billion), 300MW wind project to proceed.
The Overseas Private Investment Corporation
(OPIC) is in advanced discussions with LTWP to join the lender group.
After eight years of development with the full support of the Government of Kenya and Kenya
Power, ERC and KETRACO, the signing of the financing agreements signifies the completion of
the project’s financing subject to completing the remaining conditions precedent after which
construction will commence and begin producing power in early 2016.
The LTWP project is the largest single wind power project to be constructed in Africa and is to
date, the largest private investment in the history of Kenya. The project is a key deliverable
under the Government’s commitment to scaling up electricity generation to 5,000MW and to
provide cost effective renewable power to the Kenyan consumer. The project alone will
produce approximately 20% of Kenya’s currently installed capacity at €7.52 cents/kWh
(Ksh9/kWh). It is also a Vision 2030 flagship project and will be a transformative project in
terms of the development impact to the Northern arid areas of Kenya, the electricity sector,
and to Kenya as a whole. It is also expected to generate up to US$150 million/year in foreign
currency savings to Kenya through fuel displacement costs.
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The project’s debt raising is led by the AfDB, as mandated lead arranger, the Standard Bank of
South Africa and Nedbank Limited as co-arrangers, EIB, FMO, Proparco, East African
Development Bank, PTA Bank, EKF, Triodos, DEG, and OPIC (subject to receiving the final
approval). The Government of the Netherlands has also provided a grant of €10 million and the
European Union, a subsidized facility through the EU Africa Infrastructure Trust Fund of a
further €25 million.
“The LTWP project has been under private development since 2005 and that is in itself a
remarkable testimony to the stability and soundness of the Kenyan electricity sector as well as
the environment for Independent Power Producers,” said Carlo Van Wageningen, Chairman,
LTWP. “We are delighted that this project will move forward with the continued support of the
Government of Kenya, Kenya Power, KETRACO the African Development Bank, and the
numerous other partners.”
The LTWP consortium is comprised of KP&P Africa B.V. and Aldwych International as codevelopers and investors, and Finnish Fund for Industrial Cooperation Ltd (Finnfund), Industrial
Fund for Developing Countries (IFU), Norwegian Investment Fund for Developing Countries
(Norfund), and Sandpiper as investors. Aldwych will also oversee construction and operations
of the project on behalf of LTWP.
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Ends –
For further press information please contact:
Mary E O’Reilly
Phone : + 254 733 751 799 or +254 711 667 670
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Email: media@ltwp.co.ke
Please also visit: www.ltwp.co.ke for further information.
Notes to Editor:
The wind farm site, covering 40,000 acres (162km2), is located in Loyangalani District, Marsabit
West County, in north-eastern Kenya, approximately 50km north of South Horr Township. The
project will comprise 365 wind turbines (each with a capacity of 850 kW), the associated
overhead electric grid collection system and a high voltage substation. The project also includes
upgrading of the existing road from Laisamis to the wind farm site, which is partly financed by
the Dutch Government and is a distance of approximately 204km. In addition, the project will
build an access road network in and around the site for construction, operations and
maintenance. The Kenya Electricity Transmission Company Ltd (Ketraco), with concessional
funding from the Spanish Government, is constructing a double circuit 400kV, 428km
transmission line to deliver the LTWP electricity along with power from other future plants to
the national grid.
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