KTDA Small Hydro

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KTDA Power Company Lmited (“KTDA Power”, or the “Company”), is a wholly-owned subsidiary of Kenya Tea Development Agency Holding Limited (“KTDA), set up to develop renewable energy projects to support KTDA’s operations. IFC’s investment (the “Project”) will support the design, construction, operation and maintenance of seven run-of-the-river small-hydropower plants (“SHPs") and related transmission lines, ranging from 1.1MW to 6.5MW and with a total installed capacity of 16MW in various locations in Kenya. The SHPs will provide captive power generation for KTDA’s tea factories, and will sell any excess to the state-owned utility company, Kenya Power Company Limited. The total project cost is estimated at $85.6M; IFC’s investment is an A Loan of up to $12.5M and Global Agriculture Food Security Program (GAFSP) Loan of up to $12.5M. KTDA is one of the largest private tea management agencies in East Africa. KTDA is owned by 54 individual tea companies that operate 65 tea processing factories across Kenya. Each tea company is owned by a number of smallholder tea farmers; there are approximately 562,000 smallholders supplying tea leaves to the KTDA companies. KTDA Power was established in 2010 as part of KTDA’s strategy to reduce energy costs at the factories. KTDA Power is developing a portfolio of small, run-of-the-river SHPs with an aggregate generation capacity of up to 29MW across 10 sites in various locations in Kenya. Three out of these 10 sites are fully funded; the remaining seven sites will be covered by IFC’s financing. Each SHP will be owned by newly created asset holding companies, Regional Power Companies (RPCs). In turn, each RPC is jointly owned by several KTDA Tea Factories located in the region where the relevant SHP is constructed. The RPCs are: Kirinyaga Power Company Ltd, Greater Meru Power Company Ltd, Settet Power Company Ltd, and Nyakwana Power Company Ltd. The four RPCs will manage the SHPs within the catchment areas of the tea factories. The design of all seven SHPs is a standard type of run-of-river small hydropower plant with intake, headrace water channel, forebay, penstock and surface power house connected to the tea factory and the national grid. The SHPs are in various stages of development/construction.The engineering, procurement and construction (EPC) contractor for South Mara and Lower Nyamindi is Jiangxi Water and Hydropower Company (JWHC), China and the contractor for Iraru is a JV between Hydropower International Sri Lanka and TransAfrica Energy, Kenya. The contractors will provide O&M services for the first year of operations and subsequently, KTDA Power, through the RPCs, will be responsible to the operations of the SHPs.