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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

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Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

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Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Steam venting from a geothermal power generating plant in Olkaria Kenya
Press Release

MIGA Supports Kenya’s Geothermal and Solar Power Growth

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WASHINGTON, January 30, 2025 – The Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantee Platform, issued $49.5 million in guarantees to Globeleq Africa Limited of the United Kingdom for its investments in Globeleq Menengai Geothermal Limited and Malindi Solar Group Limited of Kenya. The guarantees cover the risk of breach of contract for up to 20 years for the Menengai Geothermal project and 17 years for the Malindi Solar project. 

The Menengai Geothermal project is a greenfield 35-megawatt geothermal power plant currently under construction. The electricity generated by the plant will be sold to Kenya Power and Lighting Company (KPLC), the state-owned utility, under a 25-year Power Purchase Agreement (PPA). The Malindi Solar project, a 40-megawatt solar power plant, has been in operation since December 2021, with its electricity also sold to KPLC under a 20-year PPA. Both projects are supported by a Letter of Support issued from the government of Kenya, which provides a backstop in cases where payment failures occur due to political events. 

The World Bank Group Guarantee Platform is delighted to be adding two new clean energy projects to our Kenyan portfolio,” said Hiroshi Matano, MIGA Executive Vice President. “By providing guarantee coverage, we are helping bring reliable, clean, and affordable energy that drives economic growth and supports the broader objectives of Mission 300 by increasing private sector investment and the supply of renewable energy.”  

The two projects provide dependable and cost-effective power to Kenyan households, businesses, and industries. They advance Kenya’s low GHG emissions development pathway and align with the country’s long-term vision of providing 100 percent clean energy by 2030. The competitive tariffs for these projects are contributing to lowering its regional average cost of power generation.  

Geothermal energy already represents 41 percent of Kenya’s installed capacity. The new investments will reduce reliance on fossil fuels and displace expensive thermal power generated from heavy fuel oil plants. 

We are thrilled to receive MIGA’s support for our Menengai Geothermal and Malindi Solar projects. These guarantees are crucial in mitigating risks and ensuring the successful implementation of these clean energy initiatives. By harnessing geothermal and solar power, we are contributing to Kenya’s sustainable energy goals and providing reliable and cost-effective electricity to the grid,” said Jonathan Hoffman, interim CEO of Globeleq. “This partnership with MIGA underscores our commitment to driving economic growth and supporting the global transition to renewable energy.” 

MIGA’s guarantees enable foreign private sector investment in large-scale power infrastructure by assuaging concerns about energy sector challenges in Kenya. The projects align with the World Bank Group’s strategy to mobilize finance for development, leveraging private capital to support climate-friendly infrastructure and green financing.  

The World Bank Group is partnering with the African Development Bank and other partners on Mission 300, an ambitious initiative to connect 300 million people to electricity in Sub-Saharan Africa by 2030.   

About Globeleq 

Globeleq, which is owned 70% by British International Investment and 30% by Norfund, is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating 1,794 MW in 17 locations across seven countries, with a further 485 MW in construction and more than 2,000 MW of power projects in development. In Kenya, Globeleq has had a presence since 2002. The company is the 100 percent shareholder of the Menengai Geothermal project, and the 90 percent shareholder of the Malindi Solar project, the latter being the only renewable energy plant located in Kenya’s coastal energy grid. 

About the World Bank Group Guarantee Platform    

Initiated in 2024, the World Bank Group Guarantee Platform consolidates guarantee products and experts from across the World Bank Group at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030.     

For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees  

Stay updated and follow us at https://twitter.com/MIGA and https://www.linkedin.com/company/wb-miga    

 

Contact:    

In Washington: Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org   

 

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