Quantam Power East Africa to begin construction of a 35 MW power plant at Menengai in February 2018
The Kenyan government has invited tenders for banks to provide letters of credit to three independent power producers at the Menengai Geothermal Project that will see them cushioned against risks.
The selected lender, under a partial risk guarantee instrument provided for by the African Development Fund, will shelter the three private steam-power generators from risks such as lack of market for the generated electricity as well as political threats.
“The commercial bank to be selected is expected to issue letters of credit to the three companies including Quantam Power East Africa Limited, OrPower22 and Sosian Menengai,” Geothermal Development Company chief executive Johnson Ole Nchoe said in a statement.
This comes after the Energy Regulatory Commission acting director general Pavel Oimeke last month said delays in licensing, financial closure and technical hitches were adversely causing a slowdown in the setting up of power plants by GDC.
Nchoe yesterday lauded Quantam Power East Africa Limited which is the first of the three IPPs to receive a letter of support from the government for the construction of a 35 MW power plant at Menengai. This will give way for the firm to begin construction of the power plant in February 2018.
