Monday 22, October 2018 by Bloomberg

Kenya to recoup cash paid to Africa's largest wind power farm

 

Kenya will recover EUR 46 million ($53 million) paid to Lake Turkana Wind Power Ltd. after a government agency missed a deadline to build a transmission line to connect the company’s plant to the national grid.

The East African nation’s government will redeem the money from electricity consumers at a rate of EUR 0.00845 per kilowatt hour over six years from this month, Director Rizwan Fazal told reporters Monday in the Kenyan capital, Nairobi.

LTWP, as the company is known, repaid EUR 127 million for project loans last year, Fazal said. The payment included UER 46 million from the government and EUR 81 million from the company’s shareholders. They intend to recover their portion after the government recoups its contribution, Fazal said.

“We did not renegotiate with lenders despite delays,” he said. “There was no chance to renegotiate. It would have destroyed the credit worthiness of the project.”

The power plant, which has a capacity to generate 310 megawatts, is Africa’s biggest wind farm and is located in Loiyangalani in north-western Kenya. It was scheduled to become operational in October 2016 when the Kenya Electricity Transmission Co. was expected to complete a 436-kilometer (271-mile) line. All 365 turbines will be connected to the grid by the end of this month, LTWP Chairman Mugo Kibati told reporters.

 

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