London-based private equity company Actis LLP has acquired the equity interests of both the International Finance Corporation (IFC) and the African Infrastructure Investment Managers in the Kipeto Wind Power project, making it the largest shareholder in Kenya’s second largest wind farm.
The wind power plant located in Kajiado County will be Kenya’s second largest wind farm after the Turkana Wind Power project which has a generation capacity of 310MW.
The deal will now see the complete exit of the World Bank financing arm from the project originally conceived by Craftskills Wind Energy International, with support from US multinational conglomerate General Electric (“GE”).
Land acquisitions
Kipeto Energy Limited Chairman Kenneth Namunje said land acquisitions are complete with the close collaboration of the local community.
Wayleave headwinds have been a major setback for mega power projects with critical transmission lines now stuck over land issues that have ended in litigation.
“We have leased and secured more than 60 plots within the project area for the wind turbine footprint and the transmission line through voluntary participation of land owners, which is a first for any project of this kind in Kenya, and we’re constructing new houses for the families outside the project’s 500m buffer zone, so local buy-in has been a vital component,’’ Mr Namunje said.
The firm says the local Maasai community will also receive 5 percent of annual dividends once the project is on stream from 2020.
OPIC is the principal lender to the project while the African Trade Insurance Agency will provide a 10-year standby on-demand insurance cover to protect the project against risk of payment delays by Kenya Power.
[Article source: Business Daily, by Edwin Okoth]
