, NAIROBI, Kenya, Nov 13 – In a last minute deal, the European Union has stepped in to provide a Sh3.5 billion investment grant to plug the remaining gap in financing for the Lake Turkana Wind Power Project.
The investment grant is being provided on top of more than Sh22 billion debt financing that has received board approval from the European Investment Bank (EIB).
The European Union Ambassador to Kenya Lodewijk Briet said the funds will help to ensure construction can start as soon as possible.
“Demand for reliable, affordable energy is growing. Generating a sustainable, green supply of energy for industry and households is key to Kenya’s continued successful development,” Briet said.
The power project will add 300 Megawatts to the power generation capacity in the country and provide clean and affordable energy that will reduce the overall energy cost to end consumers.
It will also allow the Great Rift Valley region to be connected to the rest of the country through the improved infrastructure linked to the wind farm, including a road, fibre-optic cable and electrification.
“Electricity is absolutely essential right now for meeting demand from Kenyan farmers, businesses and households. We are proud to step-in and make the necessary funding available to keep the construction of the Turkana wind project on course,” he added.
The EIB financial contribution is part of a consortium of development finance institutions, led by the African Development Bank.
In May this year AfDB approved a Sh12.5 billion loan to finance the project in a move to express confidence in the project and attract more financiers.
Last month the bank also contributed a Sh2.4 billion Partial Risk Guarantee (PRG) for the Lake Turkana Transmission Line.