Orpower Twenty-Two consortium inks Menengai Geothermal project deal

…with Kenya Power and GDC for 25-Year Power Purchase and Steam Supply Agreements 

Local Engineering and construction services provider Civicon, in conjunction has announced the signing of a 25 year power purchase agreement with Kenya Power from its 35MW Menengai Geothermal power project near Nakuru for a publicly unspecified value.


The deal signed in association with Civicon’s project partners Ormat Technologies and Symbion Power will now facilitate the power purchase pact for the consortium’s OrPower Twenty-Two project. Civicon is a subsidiary firm of Transcentury Limited, an infrastructure company listed on the Nairobi Securities Exchange.

Speaking when he confirmed the major deal, Transcentury Group Chief Executive Officer Dr. Gachao Kiuna further disclosed that, concurrently, OrPower Twenty-Two as a special purpose vehicle for the consortium members, has also signed a project implementation and steam supply agreement (PISSA) with Geothermal Development Company (GDC). 

The power purchase and project implementation and steam supply agreements, Dr. Gachao said, will be managed and executed by OrPower Twenty-Two owned by Ormat, Civicon and Symbion Power. 

Under the PISSA agreement, OrPower Twenty-Two will finance, design, construct, install, operate and maintain the proposed Menengai Geothermal project on a build-own-operate (BOO) basis for 25 years. To support the project, GDC, will develop the geothermal resource, supply the steam for conversion to electricity and maintain the geothermal field through the term of the agreement. Under the PPA agreement, Kenya Power will in turn purchase the energy generated by the project. 

The Menengai project is expected to benefit from a Partial Risk Guarantee (PRG) facility to be arranged and provided by the African Development Bank. OrPower Twenty-Two expects to start construction upon financial closing. 

On his part, Civicon Group CEO Jason Horsey, said: “Civicon is proud to be involved in the Menengai project. Our role in building this new Power Plant will see Civicon cement its position as Kenya’s leading local Geothermal Power Engineering and Construction partner, having built power plants for all key players in the industry, delivering the lowest cost power to Kenyans” 

Ormat’s Chief Executive Officer Isaac Angel, stated: “We are extremely excited to contribute from Ormat’s expertise in the geothermal industry in building and operating this project. This will be our fourth plant in Kenya and once it is operational, we will supply 145 MW to KPLC. Upon completion of the Menengai project, more households in Kenya will gain access to cost-effective and clean power from their nation’s geothermal resources.” 

Paul Hinks, CEO of Symbion Power said, “Our equity investment in this Independent Power Project will be another milestone in Symbion’s commitment to the US government’s Power Africa initiative.” Launched by President Obama in June 2013 to increase access to power in sub-Saharan Africa, Kenya is among the target group of countries that will benefit from the Power Africa program. 




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