Geothermal development gets a shot in the arm

BY KARANJA NJOROGE

The Geothermal Development Company (GDC) has received a Sh6 billion grant from the French Development Bank (AFD), which will go towards geothermal development at Menengai, in Nakuru.

The funds will be used to purchase two rigs, rig ancillary, and to train drilling staff for the Menengai Geothermal Project.

Deficit

Speaking during the signing of the credit finance agreement with AFD, GDC Managing Director, Dr. Silas Simiyu, said the Menengai project requires $818 million, but has only received $687 million, in form of commitment and pledges.

"We still have a deficit of $131m. We, therefore, kindly request AFD to consider financing GDC further with additional $100 million, which will be used for capacity development of the drilling crew, design of steam pipeline and steam gathering network," Simiyu said.

He said the Menengai Geothermal field has a capacity of generating 1600MW of power, and the first phase of the project seeks to develop 400MW by the year 2015.

Already complete

"The first discovery well is already complete and the drilling of the third well is underway. GDC will drill 120 wells in Menengai under phase one," the MD added.

Simiyu cited the Vision 2030, saying the provision of adequate, reliable and affordable energy is a key driver of the economic blueprint, which seeks to propel the country to a medium income economy in the next 20 years.

Simiyu said the country needs to increase electricity requirement to 15,000MW to meet this goal. Out of this, GDC will develop 5,000 MW from Geothermal sources.

The Regional Director of AFD, Yves Terracol, lauded the project, saying geothermal development would increase access to energy.

He also said AFD would be willing to continue assisting in Geothermal development, if it is convinced that the funds already released have been effectively used.