By JACKSON  OKOTH

TURKANA, KENYA: It could take a while for the 310MW Lake Turkana Wind power project to commence.  This is because of lack of a road network to enable contractors move their earth moving equipment.

 The machines weigh an estimated 12,000 tonnes. “We are still grappling with this logistical nightmare owing to the fact that a 206km road that was to be constructed to ease transportation is yet to take off,” said Carlo Van Wageningen, Chairman, Lake Turkana Wind Power. “Several bridges are not yet in place.”

Although tenders have been awarded for the construction of a transmission line to carry power from the Lake Turkana project, notice from the government for work to proceed is yet to be given.

Taken long

While the Turkana Wind project was given the green light to proceed more than three years ago, it has taken long for the government to get guarantees as required by financiers.

“Direct foreign investors have been reluctant to provide finance to this project, citing political risks in Kenya among other considerations.

Recently, the European Union (EU) agreed to inject Sh3.5 billion (Euros 25 million) to bridge a financing gap in the project. The entire Lake Turkana Wind Project is estimated to cost Sh70 billion (Euros 625 million), making it one of the largest private investment projects in Kenya.

The project has attracted interest from a consortium comprising KP&P Africa B.V., Aldwych International, Industrial Development Corporation of South Africa, Industrial Fund for Developing Countries, and Norwegian Investment Fund for Developing Countries (Norfund).

Aldwych, a power company focused on Africa, will oversee the construction and operations of the power plant on behalf of LTWP.  Vestas will provide the maintenance of the plant in contract with Lake Turkana Wind Project.

Kenya Power will buy the electricity generated at a fixed price over 20 years in accordance with the signed Power Purchase Agreement.

Debt financing

The EU investment grant is being provided on top of more than Sh22 billion (Euros 200 million) in debt financing that has received board approval from the European Investment Bank. Most of the capital investment for this project is coming from European countries.

 The Lake Turkana Wind Project is considered the largest single wind farm in sub-Saharan Africa.

According to the National Wind Resource Atlas, as compiled by the Ministry of Energy, Marsabit West County is generally gifted with exceptional wind resources. The site lies at the shores of Lake Turkana and 2,300m above sea level.

“In most wind farms the world over, there are periods when there is no wind as opposed to the Turkana area that has wind all year round,” said Wageningen.