By Ronald Njoroge NAIROBI (Xinhua) --
African Development Bank (AfDB) is in
talks with investors to fund the construction of Kenya’s
Chinese-backed coal power plant, bank officials said on Monday.
Director-General of the East Africa Regional office Gabriel
Negatu told Xinhua in Nairobi that they are awaiting the
environmental and social audits before they can release the
“The owners of the
1000 MW Lamu coal plant have approached AfDB for funding to the
tune of 100 million U.S. dollars as well as guarantees of a
similar amount for the construction of the power plant,” Negatu
said on the sidelines of the First Regional Dialogue on WTO
The Lamu coal plant
will be developed by a consortium called Amu Power that includes
Centum Investments, Gulf Energy, Sichuan Electric Power and
Design and Consulting, China Huadian Corporation Power Operation
Company and Sichuan No.3 Power Construction Company.
Amu Power has
commissioned China Power Global to construct the two billion
U.S. dollars power plant. AfDB typically provides funding of
between 10 and 20 percent of a project.
Negatu said that
that they are funding the coal power plant because it is a
low-cost energy source especially given the country’s huge coal
“In addition, the
power plant will use the latest technology to ensure that its
impact on the environment is minimal,” he added.
The project finance
is part of the pan African bank’s New Deal on Energy where it
has set aside ten billion dollars to enable the continent to
achieve universal electricity access by 2025.
“Kenya will be one of the beneficiaries of the pool of
resources,” the director said.