Chinese firm CMEC to build Sh30bn wind farm in Kenya

Wind farm
The project is one of the largest US foreign direct investments in Kenya. PHOTO/FILE
China Machinery Engineering Corp (CMEC) has signed a deal with Kipeto Energy Ltd for the construction of a 100MW wind farm in Kajiado County.

CMEC, which is part of China National Machinery Industry Corp, will be in charge of the design, procurement, civil engineering, construction and commissioning of the facility among other related works.

The Chinese construction and trading firm will also build a 220-kV transmission line to transmit the generated electricity to the national grid.

“The company, as the EPC general contractor, will be responsible for the design, supply, civil engineering and construction, installation, training, commissioning, technical services and other works of the project on a turnkey basis,” said CMEC in regulatory filings.

“As stipulated in the contract, the project construction will commence upon the satisfaction of certain conditions precedent. The construction period of the project will last about 22.5 months once the construction is commenced.”

The wind farm, which will be located in the Kipeto area of Kajiado, is the brainchild of Kipeto Energy Ltd and will be put up at a cost of Sh30.6 billion ($300 million).

The Overseas Private Investment Corporation (OPIC), the American government’s development finance arm, will provide debt financing for the facility to the tune of Sh24 billion ($233 million).

The project is one of the largest US foreign direct investments in Kenya.

The African Infrastructure Investment Fund II is the largest shareholder of the project with a 55 per cent stake, followed by the World Bank’s investment arm IFC and Craftskills Wind Energy International Ltd., which have a 20 per cent stake each with the Kipeto Local Community Trust owning a five per cent stake.