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Friday, 29 June 2012

Geothermal Development Company of Kenya calls for Investors to Develop Geothermal Steam at 2 locations

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....