Following the financial close of Lake Turkana Wind Power Project (LTWP), the first disbursement of funds pursuant to the financing agreements signed in March 2014 has been received.
The Sh70 billion 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 and the most complex and challenging project financing undertaken in the renewable energy space in sub-Saharan Africa.
The project is a key deliverable under the Government’s commitment to scaling up electricity generation to 5,000MW and is a flagship project within the Vision 2030 program.
“Reaching this important milestone today caps a year of major achievements by LTWP,” said , LTWP’s Board Chairman Mugo Kibati. “This includes signing the financing agreements in March, issuing notice to proceed by KETRACO to the transmission line construction contractor in August, financial close of the LTWP equity partners in September, as well as notices to proceed to LTWP’s contractors in October.”
The LTWP project is expected to provide cost effective renewable power to the Kenyan consumer and will comprise approximately 20% of Kenya’s currently installed generating capacity.
The LTWP consortium is comprised of KP&P Africa B.V. and Aldwych International as co-developers and investors, and Finnish Fund for Industrial Cooperation Ltd (Finn Fund), Industrial Fund for Developing Countries (IFU), Norwegian Investment Fund for Developing Countries (Norfund), Vestas Eastern Africa (VEAL) and Sandpiper as investors. Aldwych Turkana Ltd, an affiliate of Aldwych International, will oversee construction and operations of the project on behalf of LTWP.
The support, interaction and uplifting of local communities is a high priority for LTWP.
As such, LTWP adopted a Corporate Social Responsibility (CSR) Program which will be implemented by the Winds of Change Foundation (a wholly owned subsidiary of LTWP).
This foundation aims to uplift local communities through programs such as the CHAT HIV awareness campaign, water, sanitation, electrification, sustainable development of agriculture as well as the education of boys and girls. Initially, activities will be concentrated around the wind farm communities (Loyangalani, Korr and Laisamis divisions, with South Horr).