Thika Thermal Power Project

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The Thika Thermal Power Project was to be developed by Thika Power Ltd., a special purpose vehicle registered under the laws of Kenya, which is 90% owned by Melec PowerGen (BVI), with the remaining 10% owned by Africa Energy Resources Pte. Ltd. The project consists of the development, design, construction and operation of a greenfield 87 MW Heavy Fuel Oil diesel power plant on a 20 years Build-Own-Operate basis in Thika, about 35 km from Nairobi, Kenya. The Project was to have a 20 year Power Purchase Agreement with Kenya Power and Lighting Company (“KPLC”), the national transmission and distribution company. The project’s prime movers will be medium-speed reciprocating diesel engines, using HFO as primary fuel with supplemental firing of light fuel oil (LFO), and a steam turbine bottoming cycle. The plant configuration will consist of five 18V48/60 MAN diesel generating units (medium-speed diesel engines of 18.9MW each) with one MAN Model Marc2 C01 steam turbine driven generator (approximately 7 MW). The steam turbine is powered by steam produced using the waste heat of the five reciprocating engines. The net output of the project will be approximately 87 MW. The heat rate of the Project is improved as engine exhaust energy is used to generate steam for the steam turbine. The electricity produced from the project was sufficient to power about 65,000 customers annually. The AfDB announced on December 7, 2011 that it would support the development of the power plant with a loan of almost $40 million (€ 28.1 million). The IFC contributed with a similar amount. However, actual financial close for the project was on the 23rd October, 2012. Total project cost was USD 112 million, with 112 million provided in debt. IFC and AFDB provided USD 28 million each. ABSA Bank of South Africa provided USD 28 million with an undisclosed bank providing another 28 million. IDA provided a 15 year. In May 2012, MIGA issued guarantees of $61.5 million covering ABSA Capital to Thika Power Ltd. in Kenya. The 15 year guarantees will include: risk of breach of contract. Sponsor needs to be updated ("others"). Full investment picture unclear.