Kenya’s State-owned Geothermal Development Company (GDC) has received concessionary loans worth 124 million U.S. dollars to tap the country’s geothermal resource at Menengai.
Hela Cheikhrouhou, African Development Bank’s (AfDB) director for energy, environment and climate change department, said in a statement on Friday that this is the first project under the climate investment funds dedicated to a low-income African country to be approved by a multilateral development bank.
Hela Cheikhrouhou, African Development Bank’s (AfDB) director for energy, environment and climate change department, said in a statement on Friday that this is the first project under the climate investment funds dedicated to a low-income African country to be approved by a multilateral development bank.
The loan has been approved under two financing vehicles - 124 million dollars from the African Development Fund (ADF), and 25 million dollars from the Climate Investment Fund which is implemented by AfDB.
"When completed, the project will help trigger substantial increase in the provision of reliable, clean and affordable energy equivalent to the current consumption needs for 500,000 Kenyan households, 300,000 small businesses and some 1,000 GWh (Gigawatt hour) to other businesses and industries," Cheikhrouhou said.With substantial geothermal potential, Kenya has made this sector a priority in its 2030 vision, with an objective to develop 5,000 MW of geothermal energy. The project will also help reduce some 2 million tons of CO2 emission per year.
