Ms Elizabeth Littlefield, presiden of Overseas Private Investment Corporation: The wind power project underscores the US government’s support for powering Africa and helping millions of Kenyans access cheap electricity. SALATON NJAU
What you need to know:
During the construction phase, the single largest wind power project in Africa will provide employment to 2,000 Kenyans as well as sustain nearly 200 full-time jobs upon completion.
The Lake Turkana Wind Power (LTWP) project yesterday received Sh21.75 billion from the US government, its biggest grant to Kenya’s quest for clean renewable energy. The funds, channelled through the Overseas Private Investment Corporation (OPIC), will see the 310 megawatt project come to fruition, serving 2.5 million Kenyan homes.
OPIC president Elizabeth Littlefield described the project as historic, adding that it underscores the US government’s support for powering Africa and helping millions of people in Kenya to access cheap electricity for use in homes and industries.
A dispatch appearing on commercial website Businesswire.com said that once operational, the LTWP venture would boost Kenya’s electricity capacity by 20 per cent.
During the construction phase, the single largest wind power project in Africa will provide employment to 2,000 Kenyans as well as sustain nearly 200 full-time jobs upon completion.
OPIC is playing a key role in president Barack Obama’s Power Africa Initiative and has committed to providing Sh130 billion ($1.5 billion) to develop energy projects throughout Sub-Saharan Africa over the next five years. “This project demonstrates the collaborative and innovative approach OPIC takes in supporting the Power Africa goal of achieving widespread energy access across Sub-Saharan Africa,” said Ms Littlefield.
OPIC is a US government’s development arm. The firm mobilises private capital thereby helping American businesses to gain a foothold in emerging markets, catalysing revenues, jobs and growth opportunities both at home and abroad.
It supports 278,000 American jobs and 4,000 projects in 150 countries across the world. The projects are worth over Sh1.7trillion, attracting US exports worth billions of shillings.
Upon completion later in the year, LTWP will help ease chronic power shortages which have seen Kenya Power rely on expensive diesel-fired thermal power, raising consumer charges.
Kenya’s electricity capacity is mainly based on hydropower and the nascent geothermal power supply has been over-stretched with demand growing at an annual rate of eight per cent. According to the LTWP website, the project is the largest single private investment in Kenya. It will replace Kenya’s expenditure of about Sh15.6 billion per year on importing fuel.
The project’s tax contribution to Kenya will be about Sh3 billion per year and Sh58.6 billion over the life of the investment. About 2,500 jobs will be created during project construction, followed by over 200 full time jobs.
