The Geothermal Development Company of Kenya (GDC) has made a call for investors who wish to invest in the development of geothermal steam at 2 locations in the Kenyan Rift Valley. Those interested please have a look at the following link:
http://www.gdc.co.ke/index.php?option=com_content&view=category&layout=blog&id=75&Itemid=172
The locations are:
1. Bogaria-Silali Block Phase 1 development of 800MW Geothermal Steam
2. Menegai Phase II 800MW Joint Steam Development
In both cases GDC will undertake the operational and technical side of the project while investing 20 - 40% of the projects' funds.
Invited potential investors will finance the remaining 60 - 80% of the projects, receiving regular payments(coupons) from the projects revenues over a period of 20 years until they have recouped their investments.
Investor groups are being asked to put up US$200m which is enough for the development of at least 200MW of electricty from the geothermal steam. My guess is that they intend to get 4 investors per project.
This is a structured approach and interesting way of financing a projected as opposed to taking a loan or obtaining equity investors.
All the best to GDC....
This is a step in the right direction particularly for East Africa which has a lot of potential in generating clean energy from natural resources. Developed countries are turning to green energy with the ever increasing energy demand and GDC found a clever and environment friendly way of attracting investment in this sector.
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