Mauritian firm signs US $40m deal for Menengai geothermal plant

Kenya has received a major boost in the energy sector after a Mauritian firm signed US $40m financial deal for the construction of Mauritian firm Quantum Power East Africa’s 35MW Menengai geothermal plant with African Development Bank.

AfDB President, Akinwumi Adesina confirmed the statement and lauded the government for ensuring Kenyan personnel develop the plant, which is the biggest geothermal project in Africa. The lender will provide the funds to Quantum Power, one of the three Independent Power Providers contracted by the Geothermal Development Company to build the 105-MW Menengai Geothermal power plant. The two contracted IPPs are American-Ormat Technologies and local company, Sosian Energy.

“I look forward to the IPPs actually starting so that we can begin to see a lot of changes in the lives of the people around,” said Adesina during his tour to the plant. Commencement of the geothermal project which had experienced delay since 2014 over lack of funding is set to begin in August with projected completion in 18 months.

The government has also issued letters of support to Quantum Power East Africa and Sosian Energy, paving the way for them to start constructing their plants. The three IPPs will each develop 35-MW plants that will see Menengai Geothermal project generate 105-MW of clean energy upon completion of the first phase.

Development of the evacuation line has also been completed by Kenya Electricity Transmission Company Limited, ensuring that power will be transmitted immediately upon generation. Geothermal Development Company is also finalizing on the 25 Km Steam Gathering System that will channel the steam to the power plants for the generation of electricity.

Quantum Power will become the first IPP to start developing its plant at a cost of US$ 82m. Sosian Energy also recently signed a pact with Korea Western Power for a 25-year Operations and Maintenance (O&M) program for its 35 MW geothermal plant