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

2015 Nuclear Energy Global Outlook

The year 2014 was a year of resurgence in some countries and loss in others in the nuclear energy industry.

Loan guarantees a shot in the arm for U.S. nuclear

"Loan guarantees" at one point were a four-letter word in the energy industry.

Follow Power Engineering on Twitter
Latest News
GE names two to leadership positions GE Power & Water Global Research

GE names two to leadership positions

GE (NYSE: GE) announced the appointment of two new company officers.

Preferred bidders picked for new UK nuclear power project

EDF Energy announced more preferred bidders for construction of the Hinkley Point C nuclear p...

Nuclear unit returns to service after water leak repaired

The 600-MW Fort Calhoun nuclear power plant in Nebraska was returned to full power after a le...

Exxon profit falls by half but production rises

Exxon Mobil Corp. profit dropped by half in the second quarter on sharply lower oil and gas p...

NY to give low-cost electricity to Amazon, Bausch & Lomb

New York state is giving low-cost electricity to 15 businesses around the state as part of a ...
TEPCO executives face charges in Fukushima accident

3 ex-TEPCO execs to face criminal charges

A Japanese judicial committee has decided that three former utility executives should face cr...
07/29 Henry Hub Average Natural Gas Spot Prices

07/29 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...

GE wind turbines to power British Columbia’s largest wind farm

GE today confirmed it will supply Pattern Development with 61 wind turbines for its 180-megaw...

Power Engineering Current Issue

01/01/2015
Volume 119, Issue 1
1501pe-cover-lg
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 | 2014 | 2015

Power Industry Wire News

Vantage Drilling Company Schedules Second Quarter 2015 Earnings Release Date and Conference Call

Vantage Drilling Company Schedules Second Quarter 2015 Earnings Release Date and Confer...

EnerJex Resources Declares Monthly Cash Dividend on 10% Series A Preferred Stock

EnerJex Resources Declares Monthly Cash Dividend on 10% Series A Preferred Stock

FX Energy Schedules Second Quarter 2015 Financial and Operating Results Conference Call

FX Energy Schedules Second Quarter 2015 Financial and Operating Results Conference Call

Scorpio Bulkers Inc. Announces Purchase of 1,050,000 Common Shares by Scorpio Service Holdings Limited

Scorpio Bulkers Inc. Announces Purchase of 1,050,000 Common Shares by Scorpio Service H...

Magellan Petroleum Regains Compliance With NASDAQ Listing Requirements

Magellan Petroleum Regains Compliance With NASDAQ Listing Requirements

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 >>