AfDB provides $336m financing for clean energy, road infrastructure development in Kenya
A statement from the Bank March 16, 2012 said the financial package includes a “$186.7 million loan for the Mombasa-Nairobi-Addis Ababa Road Corridor Project and a $149.5 million loan and grant financing for the Menengai Geothermal Development Project”.
The signing ceremony was led by the Kenyan Minister of finanFe, Mr. Robinson Githae, accompanied by the Minister for Roads and other top government officials. Mr. Gabriel Negatu, Director of the Bank’s regional center in East Africa, based in Nairobi, represented the AfDB, according to the statement.
Expected benefits of the road project include a minimum 25 percent increase in intra-COMESA and increased trade between Kenya and Ethiopia by at least 200 percent by 2017. The AfDB anticipates that the project will also increase average household incomes of at least 10% by 2020.
The Menengai field alone has a potential of up to 1600MW, and the AfDB said its support will help develop the steam field for generation capacity of up to 400MW in a first phase, which is represents a 20% increase in installed capacity of the country.
The signing of these agreements totaling $336 million brings the AfB’s combined support to Kenya’s Energy and Transport sector close to $1.4 billion, the Bank indicated.
By Ekow Quandzie