Centum targets key Olkaria steam, issues Sh6bn bond
A Geothermal Development Company engineer monitors a geothermal well in Menengai, Nakuru, last year. PHOTO | FILE
What you need to know:
Akiira Geothermal has advertised for engineers, environmental scientists, geochemists, geologists and technicians.
Akiira intends to construct a geothermal power plant at a cost of Sh29 billion. It intends to produce 70 megawatts of power at the plant.
Akiira Geothermal, partly owned by listed firm Centum Investments, has embarked on recruitment of key staff ahead of exploration drilling near Olkaria.
The company has advertised for engineers, environmental scientists, geochemists, geologists and technicians.
The move came as Centum announced it had received Capital Markets Authority (CMA) approval for listing a Sh6 billion fixed-rate and equity-linked notes on the Fixed Income Securities Market Segments (FIMS) of the bourse, part which will go to its energy investments. The sale opened Monday.
“The note issue will be a component of the funding applied to develop Centum’s proprietary opportunities specifically in the financial services, energy and real estate sectors,” said Centum.
Akiira intends to construct a geothermal power plant at a cost of Sh29 billion. It intends to produce 70 megawatts of power at the plant.
The firm also advertised for quotations for the procurement of security services as well as for fuel supply. It also requires suppliers of equipment for the environment, measuring and monitoring.
“Akiira Geothermal Limited is a private company seeking to carry out exploration drilling leading to the construction of a 70MW geothermal power plant in the Greater Olkaria Geothermal Area, immediately to the south of the Olkaria domes area. Akiira seeks to recruit experienced scientists, engineers and technicians,” said the ad.
Akiira is jointly owned by Centum and Danish investment firm Frontier Markets. The two will contribute 30 per cent or Sh8.6 billion of the project’s cost of $300 million (Sh29 billion) while the rest comes as a commercial loan from a local bank.
Last October, Akiira received $1 million (Sh96 million) from the Overseas Private Investment Corporation (OPIC) as part of US President Obama’s Power Africa Programme. The grant was for technical and legal work before the start of drilling.
The actual construction of the power plant at Olkaria is contracted out to Ram Energy and Marine Power. Akiira also plans to add another 70MW plant by December 2018, to bring the total geothermal power it will add to the national grid to 140MW in the next three years.
Centum Investments is investing heavily in power generation as it is also involved in the Lamu coal plant which is expected to produce 960MW.
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