EIB to finance Kenya Power

12 May 2004 - The European Investment Bank (EIB) and the World Bank will inject Sh8bn ($101m) to rescue the struggling Kenya Power and Lighting Company (KPLC).

The fresh funding approved by the bank's board in Washington provides a respite to Kenyans having suffered erratic and unreliable power supplies over the last six months.

Under the new agreement, the World Bank will provide Sh5.2 billion capital that will mainly finance distribution, feasibility studies and capacity building.
The European Bank, which is expected to give Sh2.6 billion, will fund part of the Sh3 billion investment in power generation at the coast region.

The entire energy sector recovery project is estimated to cost Sh12 billion, a budget that is outside the capability of the Energy Ministry, which is charged with the programme.

Under the financing arrangements, the Government is supposed to provide Sh1.2 billion funding, leaving a finance gap of Sh2.8 billion to cover the entire project.

According to information availed to The Financial Standard, distribution system in Nairobi and coastal area will be upgraded and reinforced through construction of 66/33/11 KV lines. Sub-stations and distribution transformers will be provided under the programme as well as provision of miscellaneous facilities- metering, control and load dispatch equipment.

The project is expected to reduce non-technical losses by about 4 per cent and technical loses by one per cent. It will also result to an increase in customer connectivity by about 300 000 people.

"In addition, the quality of power supply will improve and interruption will be reduced," says sources at the bank.

A study by the bank indicates that Kenya has the highest transmission and distribution loses of 21 per cent in Sub-Saharan Africa.

Sponsored by FLSmidth

Related Articles

Check out these highlights during Power Generation Week

More than 22,000 industry professionals from around the world gathered in Orlando for Power Generation Week, where innovative and cost-effective solutions for maintaining, operating and building new power generation were shared. More than 1,400 exhibiting companies from every sector of the industry showcased their products and services on the exhibit floor.

RES Americas, PSE to develop battery storage project

Puget Sound Energy (PSE) and Renewable Energy Systems Americas Inc. (RES Americas) have announced plans to launch a battery storage project in Whatcom County, Washington.

Follow Power Engineering on Twitter

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Bayport International Holdings, Inc. (BAYP) Announces Completion of the Brown Lease in McIntosh County, Oklahoma

Bayport International Holdings, Inc. (BAYP) Announces Completion of the Brown Lease in ...

National Hockey League Names Constellation Its Official Energy Provider, Will Offset Carbon Footprint Across All 30 Team Markets

National Hockey League Names Constellation Its Official Energy Provider, Will Offset Ca...

BioCNG, LLC Announces Groundbreaking on BioCNG Vehicle Fuel System and Pipeline for Grand Junction, Colorado's Persigo WWTP

BioCNG, LLC Announces Groundbreaking on BioCNG Vehicle Fuel System and Pipeline for Gra...

Synergy Resources Corporation Provides an Operations Update, Estimating 100% Year-Over-Year Production Growth, and a Revised Fiscal 2015 Capital Forecast

Synergy Resources Corporation Provides an Operations Update, Estimating 100% Year-Over-...

XZERES Sees Accelerating Sales Growth, Driven by Further Adoption in Key Markets

XZERES Sees Accelerating Sales Growth, Driven by Further Adoption in Key Markets

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>