National Treasury of Kenya signs support for Menengai geothermal project
The steam gathering system in the Menengai geothermal field, Kenya (source: YouTube screenshot / GDC)
Carlo Cariaga
28 Jun 2023
The Menengai geothermal project of Globeleq has received protection from political and country risk with the support of the National Treasury of Kenya.
The National Treasury of Kenya representing the Kenyan government has signed a letter of support for the 35-MW geothermal power project currently under construction in the Menengai geothermal field. The letter was granted to UK-based energy firm Globeleq, which is developing the project thru subsidiary Globeleq Geothermal Kenya Limited and as a majority stakeholder in Quantum Power East Africa.
A groundbreaking ceremony for the geothermal power project was recently held with representatives from Globeleq, the Geothermal Development Company (GDC), and the regional and national governments.
The letter of support granted to Globeleq insulates a private investor and the investor’s lenders from certain elements of country and political risk. This helps a firm to secure funding and gives a major boost to the security of the project. The firm had previously announced that the project would reach a financial close within the next two or three weeks, “subject to the remaining conditions precedent being fulfilled by the government.”
“We see that the current government is unlocking the barriers that were there,” commented Geothermal Development Company (GDC) Managing Director Paul Ngugi after confirming the news. GDC is managing the Menengai geothermal steam field.
Source: Nation
