African independent power producer (IPP) Globeleq has reached financial close on a solar photovoltaic (PV) project in Malindi, Kenya.
The project has received $52m in debt financing from UK’s development finance institution CDC, including $20m from the German development finance institution DEG.
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By GlobalDataLocated in Langobaya in the Malindi District, which is about 120km north-east of Mombasa, the $69m project is one of the first IPP owned utility-scale solar power plants in Kenya.
Globeleq CEO Paul Hanrahan said: “The attractive investment climate combined with strong local community support sets the stage for this important project as well as future investments in Kenya. We are extremely pleased to be making this investment into the Kenyan energy sector.’’
The company noted that it has also initiated construction works for its 40MW (52MW peak) solar PV plant, which has a 20-year power purchase agreement in place with the national distribution company Kenya Power.
Globeleq is working with its partners’ IDEA Power and Africa Energy Development Corporation (AEDC). Globeleq holds 90% ownership interest in the project and the remaining 10% will be held by AEDC who is the project originator.
The partners have provided equity, project development and construction management experience for a solar PV project.
AEDC director Zohrab Mawani said: “AEDC is excited to have reached this significant milestone with the Malindi project. Working with our partners, we are very pleased to contribute to sustainable economic development in Kenya and look forward to continued growth in Sub Saharan Africa.”
Sterling and Wilson Solar is the engineering, procurement and construction (EPC) contractor for the project. The company has started civil and electrical construction works for the project, which is expected to enter commercial operations in mid-2020.
