Aldwych Lake Turkana Wind Farm

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Lake Turkana Wind Power Limited (LTWP) reached financial closure in December 2014, to build, own and operate and transfer 310 MW wind project to be located on the shores of Lake Turkana, Kenya. The project company was 51% owned by Aldwych International, South Africa’s Industrial Development Corporation (25%), Pan Africa Investment Development Fund and Vestas, the leading Danish manufacturer of wind turbines (12.5%) and the six co-founders (6.5%. Vestas was selected as the equipment supplier, providing 365 V52 turbines rated at 850kw. Aldwych International, registered in London (UK) received early investments from the Shell Foundation and a significant contribution from the Dutch FMO development institution. The project was to consist of 365 turbines of 850kW. In September 2010 LTWP signed a 20 year PPA with the state-owned Kenya Light and Power Company. The PPA was reaffirmed in September 2011. Wind measurements started in November 2006. The premium tariff for power was set at EUR 72.20/MWh, subject to limited variability according to market conditions. In 2011 the project was registered as a CDM project, with full comissioning was expected for 2014. Construction was expected to last 32 months. Maintenance contract was signed with Vestas. Operations were to be performed by Aldwych International over the 20 year period. Total project cost was USD 635 million, not including construction of the transmission line to connect the project to the grid. Government transmission company Ketraco was to build the 428km transmission line at a cost estimated at USD 177 million, partially financed by export credit (concessional financing) form Spain. Cost for the facilities construction was estimated at EUR 430 million (USD 563 million). No financial closure had been reported and was targeted for March 2012 by the project company. The project was expected to generate Ksh 26 billion ($308.6 million) in carbon credits through UNFCCC CDM, registered February 2011. Update: As of 2012 the world Bank had pulled out of the project. However the AFDB had stated its intention to continue the project by implemented its new guarantee product. Financial close expected at some point in 2013. In 2013, the Board of Directors of the African Development Bank (AfDB) approved USD 149.5 million in financing for a wind power project in Kenya’s Lake Turkana region. The project will add 300 MW to power generation capacity and will benefit Kenya by providing clean and affordable energy that will reduce the overall energy cost to end consumers. Also AfDB would provide a EUR-20-million (USD 27.2m) transmission line delay partial risk guarantee (PRG). http://ltwp.co.ke/ http://www.doingbusiness.org/re/data/project/aldwych-lake-turkana-wind-farm-6235 The African Development Bank was selected to arrange 70%, or EUR 300 million of the debt financing, providing EUR 100 million from its own account. The project company reported the following debt arrangers: the Standard Bank of London, Nedbank of South Africa and BKF, the Danish development bank Industrial Fund for Developing Countries (IFU) and Norwegian Investment Fund for Developing Countries (Norfund).