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$29.9 million equity and quasi-equity investments to Globeleq Menengai Geothermal Limited of Republic of Kenya (Kenya) against the risk of breach of contract for a period of 20 years.
The Menengai project is a greenfield 35-megawatt (MW) geothermal power plant. The project involves the financing, design, procurement, construction, installation, completion, testing, commissioning, operation, and maintenance of a 35MW geothermal power plant, including associated and auxiliary works, equipment, infrastructure, and interconnection facilities located at Menengai, Nakuru County (the Project). The estimated 280-gigawatt hour of annual power generated by the geothermal power plant will be evacuated via a 132 kilovolt (kV) on-site substation and a 13-kilometer double circuit 132 kV line from the Menengai site to Soilo substation, an associated facilities to the project.
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 is expected to yield development benefits by increasing generation capacity and electricity delivered to the off-taker at a competitive price, while contributing to GHG emissions savings. The Project is also expected to increase the share of private sector participation in the geothermal generation sector, with potential positive demonstration effects on the viability of the IPP model in Kenya’s renewable power sector.
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.
