Nairobi, Kenya — Globeleq, one of the leaders in the energy sector in Africa, has reached financial close for the Malindi solar photovoltaic (PV) project in Kenya, involving 40 MWAC in alternating current (52 MWp or peak watts) and Globeleq is starting construction of the plant.

This USD 69 million project is located at Langobaya in the Malindi district of Kilifi County, 120 km northeast of Mombasa. This marks Kenya's start of construction of one of the first utility-scale, independent power provider (IEP)-owned solar power plants. The electricity will be sold on the basis of a 20 year agreement with Kenya Power which is the national distribution company.

Globeleq has worked alongside Africa Energy Development Corporation (AEDC), the originator of this project and which will retain 10% ownership, as well as its partner IDEA Power in order to provide equity and the experience of management of the development and construction of the project for the realization of this one. CDC, a UK-based development finance institution as designated lead arranger, secured $52 million in debt financing, including $20 million from DEG, a German development finance institution.

Paul Hanrahan, CEO of Globeleq, commented: “The favorable investment climate coupled with strong local community support sets the context for this important project and future funding in Kenya. We are extremely pleased to make this investment in the energy sector in Kenya. »

Zohrab Mawani, Director of AEDC, added: “AEDC is excited to see that the Malindi project has reached this significant milestone. In our work with our partners, we are delighted to contribute to the sustainable economic development of Kenya and we look forward to continued growth in sub-Saharan Africa. »

Sterling and Wilson Solar, an engineering, procurement and construction management company undertook the civil works and construction of the electrical installations. Tenure rights, environmental and local permits have been obtained, and the project team is carrying out regular community consultations. Construction will take approximately twelve months and commercial operation is expected to begin around mid-2020.

It is anticipated that the construction will require approximately 250 employees, many of whom will be recruited from the local community. Globeleq will oversee the construction and operations of the power plant.

About GlobeleqGlobeleq is a leading developer, developer and operator of power generation in Africa. Since 2002, its seasoned team of professionals has built a diverse portfolio of independent power plants. The Company owns and operates nearly 1,400 MW in 12 locations in 5 countries, and additional projects of 2,000 MW are under development.