National Lands Commission (NLC) granted Amu Power land rights to construct the long awaited Lamu coal fired plant. This is an assurance to investors that they can start construction when they so wish.
Amu Power, a consortium of Gulf Energy and Centum Investment intends to set up a Kshs. 180 billion Coal power plant at Kwasasi area in Hindi Lamu but was awaiting a nod from the NLC over the acquired 985 acres of land.
The Power Plant will be constructed on the basis of the strictest World Bank & AFDB Environment guidelines and latest technologies will be integrated to reduce emissions and impact. The project is expected to generate 981.5 megawatts of electricity once complete.
Standard Bank together with Industrial & Commercial Bank of China Ltd (ICBC) will finance a KES 200 billion ($2Bn) towards the plant. Power Construction Corporation of China will be in-charge of setting up the plant, which is expected to put the country at the same level as South Africa which is a major user of the source of energy.
Financing for the project will be through debt which will account for three quarters of the project and shareholders’ equity that will be at least KES 500 million. The remaining amount has been negotiated with South Africa’s Standard Bank and China’s Industrial Development Bank and will be serviced to the firm as a loan according to Standard Bank’s latest financial report. The construction is expected and will take a period of 21 months to complete.
The plant project is part of the planned Lamu Port South Sudan-Ethiopia Transport (LAPSSET) corridor. Amu Power has submitted the Environmental Impact Assessment report to the National Environment Management Authority (NEMA). The report displays a full study done between Amu Power, National Government and Lamu County to assess items such as land, structures and crops.