In order to ensure the completion of the Turkana wind farm project, the government of Kenya will take it upon itself to meet debts owed by one of the contractors involved. The government will release a €42.7 million to pay the sub-contractors who work on the project.
The contractor, Isolux, which had secured the construction of a 428-km high-voltage line to supply the electricity produced by the Turkana wind power plant, has been unable to meet its commitments. It has been having financial difficulties and in July announced a debt restructuring deal.
"We want to deal directly with the companies, and will be reimbursed by the Spanish government. An account has been opened at the Kenya Commercial Bank, which will issue letters of credit to suppliers in order to guarantee their payment on time," said Charles Keter, Minister of Energy, according to the Daily Nation.