The Lake Turkana transmission line delay PRG covers investors against the risk of a possible delay in the construction of a 428km publicly owned transmission line between Loyangalani and Suswa and associated substations needed to connect the project to the national grid.
It will support the Kenyan government’s on-time delivery of the transmission line and will reduce the risk of it being unable to meet payment obligations.
Claimed to be Africa’s biggest wind power project, the project will feature 365 wind turbines of 850kW capacity each and a 33kV electrical network.
Once operational, the project is likely to generate around 1,440GWh per year, which will be sold to the grid at a price of €0.0752/kWh.
AfDB has already provided a €115m loan to the Lake Turkana project and has been supporting its development since 2009.
AfDB’s Energy, Environment and Climate Change Department acting director Kurt Lonsway said that the ADF partial risk guarantee will encourage foreign direct investment and private financing for power generation in Kenya.
"Also, by reducing the risk profile for the sponsors of and lenders to the Lake Turkana project, the PRG will accelerate financial closure and reduce the overall cost of capital to the project," added Lonsway.
