Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Triumph Power Generating Company Limited
- Project ID
- Fiscal year
- Guarantee holder
Industrial and Commercial Bank of China
CfC Stanbic Bank
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- January 13, 2012
- Project Board date
- February 28, 2012
- Gross exposure
- $106.8 million
- Project type
- Strategic priority area
- Environmental and Social Review Summary for Triumph Power Generating Company Limited in Kenya
This summary covers non-shareholder loans by Industrial and Commercial Bank of China and CfC Stanbic Bank of South Africa to Triumph Power Generating Company Limited in Kenya. The lenders have applied for a MIGA guarantee of $106.8 million for a period of up to 15 years against the risk of breach of contract.
The project consists of the construction of an 83 megawatt heavy fuel oil plant on a build, own, and operate basis. The plant will be located at Kitengela, near the Athi River, approximately 25 kilometers from Nairobi. Triumph will enter into a 20-year power purchase agreement with Kenya Power and Lighting Company.
The project is a category A under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the environmental and social documents prepared by the International Development Association (IDA) and the client for IDA's proposed partial risk guarantee supporting the project. MIGA intends to present the project to the Board concurrently with IDA.
The World Bank’s Africa Infrastructure Country Diagnostic found that the lack of adequate, reliable electricity supply is Kenya’s largest infrastructure challenge and a key constraint to economic growth (contributing to economic losses of an estimated 2 percent of GDP). The project will help Kenya achieve a more diversified energy mix and stability to its power generation. The country remains heavily dependent on hydropower, which is frequently negatively impacted by drought. Installed thermal capacity provides a less expensive alternative to investments in emergency diesel-fired plants.
MIGA’s proposed guarantee is aligned with the agency’s strategy of supporting investments in countries eligible for lending from the IDA, investments in complex projects, and South-South investments.