Globeleq has received a loan of $72 million from a consortium of financiers led by the African Development Bank (AfDB) to put up the 35-megawatt power plant at Menengai.
The other financiers of the loan are the Eastern and Southern African Trade and Development Bank, and Finnfund.
Globeleq in 2021 acquired a controlling stake in Quantum Power East Africa (QPEA), one of the three Independent Power Producers (IPPs) selected to set up power plants in the area.
The fields are owned by the Geothermal Development Company (GDC), which derisked them by drilling geothermal wells and building steam gathering systems before it recruited IPPs to build power plants under the Public Private Partnership (PPP) model.
The other firms are Sosian Energy and Orpower 22. The three are expected to put up plants with a combined electricity generating capacity of 105MW or 35MW each.
Globeleq says it will provide equity, project development and construction management for the project whose total cost is expected to be $108 million.
The firm expects construction of the project to commence during the first quarter of 2023.
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