Project:
Rabai Power
Country:
Kenya
Sector:
Power
Description:
EAIF has agreed to provide senior and mezzanine finance totalling Euro 22.57 million to the Rabai Power Project. EAIF was lead arranger for additional debt provided by FMO from the Netherlands, Proparco from France and DEG from Germany. The sponsors of the project are Aldwych International Ltd and Burmeister & Wain Scandinavian Contractor A/S (“BWSC”).

(Picture to show the switching yard)
Construction has started on the 90MW diesel power plant to be located at Rabai, near Mombassa in Kenya. The Project is the largest single investment (Euro 114 m including equity) in Kenya since the establishment of the new administration and will be delivering much needed power to the national grid before the end of 2009. The plant’s 90MW output is sufficient to provide power to up to 400,000 households and will be sold to Kenya Power & Lighting Company Ltd. (KPLC), through a 20-year Power Purchase Agreement (PPA). Once operational, the plant should be the most efficient thermal fuel plant in Kenya and one of the cleanest, as it will be operated to meet stringent international environmental and social standards.

(Picture to show the oil tanks and power house)
The developmental benefits of the project are:
- The investment of the equivalent of 12 billion KES will give a significant boost to the Kenyan economy, providing many new job opportunities in the construction and service industries, particularly for the local community.
- The addition of much needed new generating capacity will help reduce the recent electricity rationing.
- During the construction period up to 300 people will be employed on site, both in skilled and non-skilled roles. It is estimated that over 1,000 jobs will be created through direct and indirect employment from the Project.
- Following construction, Aldwych and BWSC will subsequently employ 50 skilled Kenyan technicians to manage and oversee the daily operation and maintenance of the plant.
- A Corporate Social Responsibility policy will be implemented at the Rabai plant, which in turn will directly benefit and endeavour to protect the interests of both the local and the wider community.
- Rabai Power Limited will operate the plant in conformity with stringent environmental and social requirements.
- The Rabai plant will partially replace less efficient existing plants and reduce the need for expensive back-up diesel generators, with associated environmental and cost benefits.
- Private sector financing of Rabai will enable the Government of Kenya to conserve limited public resources for other priorities.

(Picture to show the first start for one of the five engines at Rabai)

(Picture to show the oil storage tanks)

( Picture to show the power house) |