World Bank injected $29.65 million in the Menengai geothermal project, in Kenya. The bank’s arm Climate Investment Fund carried out the transaction.

The loan was guaranteed by six financial institutions: African Development, Asian Development Bank, European Reconstruction and Development Bank, European Investment Bank, Inter-American Development Bank and World Bank.

“Kenya is already demonstrating its ability to reshape its energy future by developing its vast geothermal resources through Menengai, but it still faces market barriers to full deployment of its renewables. This infusion of capital will thus serve to build investor confidence and improve bankability of these vital resources,” said Joao Duarte Cunha, one of CTF’s executives.

The funding will be used to develop two geothermal power plants with a capacity of 70 MW. The Menegai geothermal project includes various geothermal plants, totaling a capacity of about 400 MW to provide energy to about 500,000 households, 300,000 small enterprises and avoid emission of 2 million tons of CO2 per year.

The project already benefited from a $124 million credit line from African Development Bank (AfDB).

Gwladys Johnson