OrPower consortium inks geothermal power deal

NAIROBI, KENYA: Local engineering and construction services provider Civicon has announced the signing of a 25 year power purchase agreement with Kenya Power from its 35MW Menengai geothermal power project near Nakuru for a publicly unspecified value.

Civicon is a subsidiary of Transcentury Limited, an infrastructure company listed on the Nairobi Securities Exchange.

Speaking when he confirmed the major deal, Transcentury Group Chief Executive Officer Gachao Kiuna further disclosed that OrPower Twenty-Two, a special purpose vehicle for the consortium members, has also signed a project implementation and steam supply agreement with the Geothermal Development Company (GDC).

The power purchase, project implementation and steam supply agreements, Mr Kiuna said, would be managed and executed by OrPower Twenty-Two owned by Ormat, Civicon and Symbion Power.

Under the pact, OrPower Twenty-Two will finance, design, construct, operate and maintain the proposed Menengai geothermal project on a build-own-operate basis for 25 years.

To support the project, GDC will develop the geothermal resource, supply steam for conversion to electricity and maintain the geothermal field. Under the agreement, Kenya Power will purchase the energy generated by the project.