The World Bank’s Multilateral Investment Guarantee Agency, or MIGA, has allocated $110 million to Kenya to finance increased production of geothermal power.
The World Bank released a statement commenting, "MIGA has increased its coverage against the risks of transfer restriction, expropriation, and war and civil disturbance to cover an additional equity investment of $110 million for phase three of the project," Nairobi’s Business Daily reported.
The geothermal plant, scheduled for completion in two years’ time, is intended to support Kenya’s economic recovery and reduce the country’s dependency on current hydroelectric power generation projects. Given the country’s current energy shortfalls, Kenya Power is presently rationing its 90 megawatt daily output in a program that is constraining the country’s industries.
The World Bank’s MIGA agency has insured OrPower 4 Inc's Olkaria III power plant for the past decade, which became the first private geothermal power plant in sub-Saharan Africa in 2000. Ormat Holding Corporation President, Mr Yehudit Bronicki said, "MIGA's continued participation in the project is critical. With its involvement, the political risk profile of the project is much lower."
In a press release MIGA noted, "An increase in indigenous geothermal generation will guarantee a more reliable supply of energy while also reducing carbon emissions."
By. Charles Kennedy, Deputy Editor OilPrice.com
Charles is a writer for Oilprice.com