Japan Bank for International Cooperation approved a 5.6 billion yen (US$46.4 million) loan agreement January 23 for construction of the 21.2-MW Sangoro hydroelectric project in Kenya.
Kenya Electricity Generating Co. Ltd. (KenGen) plans to build the project on the Sondu River downstream from the 60-MW Sondu Miriu hydroelectric project, which already is under construction in Nyanza Province with funding from Japan. Sondu Miriu is to be completed by November 2007.
Sangoro’s two 10.6-MW generating units are to utilize water discharged from Sondu Miriu’s outlet channel, returning it to the river.
Proceeds of the loan are to be used for civil works, installation of turbine-generators and transformers, construction of transmission lines, and consulting services.
The general untied loan carries a .75 percent interest rate, a repayment period of 40 years, and a grace period of 10 years.
Sangoro is designated the highest priority of Kenya’s power development plan. With estimated annual demand growth of more than 5 percent over the coming decade, Kenya is hindered by aging power plants and a lack of domestic coal and oil.