play_arrow

keyboard_arrow_right

Listeners:

Top listeners:

skip_previous skip_next
00:00 00:00
playlist_play chevron_left
volume_up

Local

ATIDI underwrites Globeleq’s USD 117 million geothermal power project in Kenya

todayJuly 1, 2024 9

Background
share close

 

 

 

 

Nairobi-based pan-African insurer, African Trade and Investment Development Insurance (ATIDI) has provided a political risk insurance cover for Globeleq’s 35 MW Menengai Geothermal power project in Kenya.

This support will be extended via the Regional Liquidity Support Facility (RLSF) –  a joint effort by ATIDI, KfW Development Bank, and the Norwegian Agency for Development Cooperation (Norad). It helps renewable energy Independent Power Producers (IPPs).

The project, the first to be considered for RLSF cover in Kenya, is valued at USD117 million with financing being provided by the African Development Bank (AfDB), the Eastern and Southern African Development Bank (TDB), the Finish Fund for Industrial Cooperation (Finnfund), and equity from the project owners, Globeleq.

The proposed RLSF policy will cover the risk of payment default by the national utility, Kenya Power & Lighting Company (KPLC) and Geothermal Development Corporation (GDC) – a government-owned company formed to accelerate the development of geothermal resources in Kenya.

Steam will be supplied to the project by GDC under the terms of a 25-year power implementation and steam supply agreement, whilst the electricity generated will be sold exclusively to KPLC under a power purchase agreement for the same duration. The Project Company also benefits from a Letter of Support from the Government of Kenya.

Commenting on the deal, ATIDI CEO Manuel Moses stated, “We are excited to work with Globeleq, KPLC, GDC, and the Kenyan Government on this important project. “This collaboration highlights our dedication to sustainable development and renewable energy in Kenya and the region. We are proud to support Kenya’s energy transition.”

Globeleq Interim CEO Jonathan Hoffman praised ATIDI for the landmark deal and pledged continued collaboration.

“RLSF is crucial for companies needing payment assurance to invest in major renewable projects like Menengai. This innovative product from ATIDI, KfW, and Norad offers vital liquidity support against payment defaults, enabling confident investment.”

Kenya became the tenth ATIDI member state to sign the RLSF MoU after Benin, Burundi, Côte d’Ivoire, Ghana, Madagascar, Malawi, Togo, Uganda and Zambia.

RLSF MoU aims to encourage collaboration between ATIDI and its member states in identifying, developing, and implementing renewable energy projects. In addition, the objective of the RLSF MoU is to leverage each member state’s natural resources to generate clean and sustainable energy and reinforce its power generation and transmission capacity.

To date, RLSF policies have been approved in support of seven (7) renewable energy projects in Burundi, Malawi, Uganda and now in Kenya; enabling total financing of USD 323.7 million and a total installed electricity generation capacity of 171.3 MW, courtesy of USD 20.6 million worth of cover under the RLSF portfolio – achieving an impressive leverage or mobilization ratio of 16 times.

Kenya’s power sector benefits from active private investment and abundant renewable resources like hydro, wind, and geothermal energy. The government plans to increase electricity generation from 3,078 MW in 2023 to 5,000 MW by 2030. Geothermal projects will play a key role in this expansion.

ATIDI’s RLSF initiative helps ensure the stability of renewable energy projects. With this support, Kenya is on track to meet its goal of 100 percent clean energy by 2030.

 

Note to editors:

About ATIDI

ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance since inception, ATIDI has supported USD85 billion worth of investments and trade into Africa. For over a decade, ATIDI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s (S&P), and in 2019, ATIDI obtained an A3/Stable rating from Moody’s, which has now been revised to A3/Positive.

More about ATIDI: www.atidi.africa – Media registration link: https://www.atidi.africa/media-kit/

 

About Globeleq

Globeleq, which is owned 70% by British International Investment and 30% by Norfund, is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating 1,794 MW in 17 locations across seven countries, with a further 485 MW in construction and more than 2,000 MW of power projects in development. More details at www.globeleq.com.

About the Regional Liquidity Support Facility (RLSF)

ATIDI and the German Development Bank, KfW Development Bank, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ), launched the RLSF in 2017. The Facility was created to help tackle climate change and attract investments by supporting renewable energy projects in ATI’s member countries. In 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards the continued implementation of RLSF. RLSF has a capacity of USD 153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public offtakers; in turn improving project bankability and ensuring that more projects reach financial close.

www.atidi.africa/our-solutions/energy-solutions/regional-liquidity-support-facility-rlsf/

For further inquiries, please contact:

Mike Omuodo | Media Fast PR| Tel: +254 736 014 596| Email: mike.omuodo@mediafast.co.ke |

Written by: Staff Writer

Rate it

Post comments (0)

Leave a reply

Your email address will not be published. Required fields are marked *


0%