Project Description
On December 24, 2024, The Multilateral Investment Guarantee Agency (MIGA) a member of the World Bank Group, issued a guarantee to Globeleq Africa Limited of United Kingdom for their US$19.6 million equity and quasi-equity investments to Malindi Solar Group Limited of the Republic of Kenya (Kenya) against the risk of breach of contract for a period of 17 years.
The Malindi project is a 40-megawatt alternating current (MWac) power plant. The project involves the design, financing, construction, operation, and maintenance of a 40MWac solar photovoltaic power generation plant, including associated and auxiliary works, equipment, infrastructure and interconnection facilities located at Lagobaya, Malindi, Kilifi County (the Project). The estimated 98-gigawatt hour of annual power generated by the solar power plant will be evacuated via the onsite transformers and step-up substation before onto the Weru substation. From there, it will be transmitted to the Malindi substation, located approximately 16 kilometers west of Malindi town, where it directly connected to the national 220kV transmission line running between Rabai and Lamu.
Environmental Categorization
The Project is a category B under the MIGA’s Policy on Environmental and Social Sustainability. Click here to view the environmental and social review summary.
Development Impact
The Project offers MIGA the opportunity to support Kenya through reducing electricity generation costs in the region by displacing expensive hydrocarbon-based thermal power plants in the costal area, and sustaining critical energy infrastructure located close to the country’s coastal line which is one of the most important industrial, agricultural, and tourism areas in Kenya. The Project will also continue to have positive demonstration effects on the development of other IPPs in the renewable sector, supporting the GoK’s 2030 vision.
The Project is aligned with the WBG Country Partnership Framework for Kenya (FY2023-2028) and the broader objectives of the Mission 300, since it will contribute to extend sustainable infrastructure services to the last-mile. The Project is also consistent with the WBG’s Climate Change Action Plan (CCAP) 2021-2025, as it will enable Kenya’s energy transition by supporting greater reliance on renewable energy-based generation.
100 percent of MIGA’s gross issuances for the Project will be tagged as climate finance. The Project is considered Paris Aligned.
