The African Development Bank (AfDB) is considering to fund the construction of Kenya’s first coal-fired power plant.
Speaking to Xinhua in Nairobi on Monday, AfDB Director-General of the East Africa Regional office, Gabriel Negatu, said the multilateral development finance institution is awaiting the environmental and social audits before they can release the funds.
“The owners of the 1,000MW Lamu coal plant have approached the AfDB for funding amounting to $100 million as well as guarantees of a similar amount for the construction of the power plant,” Negatu stated.
Negatu noted that the bank is funding the coal power plant because it is a low-cost energy source.
“In addition, the power plant will use the latest technology to ensure that its impact on the environment is minimal,” he said.
According to media, the AfDB will typically provide funding of between 10 and 20% of a project.
Lamu coal plant
Three months ago, energy cabinet secretary Charles Keter, confirmed that the coal project is ready to begin construction following the signing of a $1.9 billion agreement between China Power Global and Amu Power.
At the time Keter said: “We are almost reaching conclusion, they have initialised the PPA.” Read more…
The project is set to be developed on 865 acres of land and feature a 210 meter tall smoke stack, which would become East Africa’s tallest structure.
Although, the coal plant has been subjected to delays as the construction was expected to begin in September 2015, Keter said it should be up and running in two years’ time.
On completion, the Lamu coal plant is expected to inject 1,050MW into the power grid, contributing to a stable power supply.
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