- EAIF has disbursed the initial loan out of $35 million it plans to lend to a 40 MW solar power plant in Kenya
- The facility is being built by Alten Energias’ subsidiary near Eldoret in the country’s Rift Valley region
- Project is contracted under a 20-year take-or-pay PPA with national utility KPLC once it comes online in Spring 2022
The Emerging Africa Infrastructure Fund (EAIF) has approved a loan of $35 million to Alten Kenya Solarfarms BV to support the development of the currently under construction 40 MW Kesses Solar Power Plant in Kenya’s Rift Valley region.
Part of the Private Infrastructure Development Group (PIDG), the EAIF said it has already disbursed the initial part of the loan to the project company of Alten Energias Renovables Group, in December 2021. Total project cost is estimated as $87 million.
Power generated by the facility on completion is contracted to be sold to the national utility Kenya Power and Lighting Company (KPLC) under a 20-year take-or-pay power purchase agreement (PPA). The developer expects to energize the facility in Spring 2022 near Eldoret.
EAIF said the project will be able to meet the growing electricity requirements of the region where Eldoret has the largest population concentration comprising government offices, higher educational institutes, businesses and financial services, textile manufacturing, agribusiness and sports tourism. Along with improving access to energy for the region, the project is also estimated to create up to 400 construction jobs and 15 permanent jobs during operations.
“The Kesses plant brings multiple benefits to Kenya’s economic development. It will also play an important part in combatting climate change and strengthening Kenya’s ability to recover from Covid-19,” said Investment Specialist at EAIF’s investment managers Ninety One, Sine Zulu.
EAIF shared that Standard Bank is supplying US$41 million in debt comprising a term loan, VAT and Debt Service Reserve facility to Alten for the project.
Recently, Globeleq started supplying power from a 52 MW DC/40 MW AC solar power plant in Kenya to KPLC under a 20-year PPA (see 52 MW Solar Plant Online In Kenya).