The European Investment Bank (EIB) has granted a €155 million financing package to Akiira Geothermal for the construction of a geothermal power plant in Kenya. The company owned in part by Centum Investments will build a 70 MW power plant in the Akiira Valley, located in Kenya’s Naivasha region.
"The loan is subject to customary commercial terms but will have an interest rate of less than 10%, which will be set after a risk assessment," said Catherine Collin, EIB Head of East Africa Region.
The total cost of implementing the power plant project was estimated at €310 million. It will be 70% funded by debt and 30% funded by Centum consortium. A power purchase agreement setting the sale price of the electricity grid at 9.23 cents was signed in 2015.