African Development Bank Provides $27 Million PRG for Turkana Wind Power Project

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The African Development Bank (AfDB) has backed Kenya's Lake Turkana wind power project since its conception in 2009, including a $156 million loan. Now the bank has provided conditions for the development of the transmission infrastructure for the project with a $27 million partial risk guarantee (PRG). This mitigates risk and covers private lender and investors against the risk of a possible government failure, which is a contractual project obligation.

The scope of the 300-megawatt (MW) Lake Turkana wind project includes 365 wind turbines with 850 kilowatts (kW) each and a 33-kilovolt (kV) electrical network. The average electricity production of the project is estimated at 1,440 gigawatt-hours (GWh) annually, to be sold to the national grid.

The Lake Turkana Line Delay PRG will be used to alleviate the risk for the construction of a 428-kilometer, publicly owned transmission line between Loyangalani and Suswa and the associated substations to connect the output from the project to the national grid. The PRG will support the Kenyan government's on-time delivery of the transmission line.

When fully commissioned, the project will add 17% to Kenya's power generation capacity and is in line with the country's target to increase total installed generation capacity to 6,500 MW in 42 months, which fast-tracks the initial plan to have an additional 1,500 MW in place by 2017.

For related information, see March 28, 2012, article - Kenya's 300-Megawatt Windfarm Set to Begin Construction

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