By MARY HEARTY
The African Development Bank Climate and The Investment Funds’ (CIF) Clean Technology Fund (CTF) approved a debt funding of US $ 29.5 million for the development of a 35-MW at Menengai Geothermal Field to Quantum Power in East Africa.
The financial program was designed by the CTF under the Dedicated Private Sector Program to unlock the obstacles of positive market transformation and reducing threats in the geothermal sector.
According to Antony Nyong, the Director for Climate Change and Green Growth at the African Development Bank, they have invested considerable resources and time in the development of the Menengai Geothermal Steam field.
“The African Development Bank has the objective of enabling Kenya to find a productive source of steam for the on-grid power generation,” said Nyong.
Nyong added: “The financial package being extended to this project shows a strong commitment towards improving Kenya’s energy sector as well as tangible efforts to curb climate change and encourage green growth on the continent.”
The project is set to strengthen relationship of the two private-public sectors and also extend the development of the renewable resources. The aim is to provide efficient electricity in the country which is one of the vital components of economic growth.
Implementation of the competitive tender processes also indicates that the government is working to create a conducive environment. This is enhancing investment of the energy sector from private sectors in order to lower electricity cost of geothermal power.
The bank will implement the support program up to two private-sector led geothermal generation projects planned as Independent Power Producers.
So, this would see Kenya’s Menengai geothermal field will be the first independent power project to benefit.