The Nation (Nairobi)
September 5, 2002

Electricity Generation Plant Meets Output Target

A power plant has met about 98 per cent of its production target since operations began in September last year.

Tsavo Power Plant's actual production stood at 524,700 MW hours over the period.

The firm, which has added 74 MW to the national grid, could have produced some 576,440 MW on demand in the past one year. It supplies power to distribution monopoly Kenya Power and Lighting Company Ltd, under a power purchase agreement.

The Tsavo project was the single largest foreign direct investment in the country in the recent past and was completed ahead of schedule. It was the first open bid project-financed Independent Power Producer (IPP).

Industrial Promotion Services (Kenya) Ltd (IPS), an affiliate of the Aga Khan Fund for Economic Development (AKFED) and Cinergy Global Power Inc of US are the largest investors through a joint venture in the Tsavo Power Company at 49.9 per cent. The United Kingdom's CDC Group and Wartsila Development and Finance Services hold 30 per cent and 15.1 per cent respectively.

The World Bank's private sector financier, International Finance Corporation (IFC), owns a 5 per cent stake.

The project was the first to be constructed under the new national environmental law.

The power firm has launched a Sh4 million environmental and community fund to benefit 13 development projects in the Mombasa area.