Olkaria gets Sh11.6B for the Geothermal Power Project

Last Updated 14 years ago by Kenya Engineer

KenGen has signed a contract for development of the 280MW geothermal power project at Olkaria. The Ksh11.6 billion contract being funded by World Bank and Development Bank KfW of Germany was signed with Sinopec International Petroleum Company (SIPC) who won the contract after competitive bidding.

The Chinese firm,SIPC will develop a steam field in 27 months. The steam field will comprise of steam pipelines, steam separators and seam filled control system to deliver steam from the geothermal wells to Olkaria 1 unit 4, 6 and Olkaria IV power plants each with a capacity of 140 megawatts.

The project set to be complete by mid 2014 will see a further 25 per cent of the current energy capacity injected into the national grid. According to KenGen’s MD Eddy Njoroge, there’s already sufficient steam to generate over 380 megawatts of geothermal power in Olkaria.

The power project last year got a Sh7.4 billion boost from Germany’s Development Bank KFW to fund consultancy services and part of the steam field drilling works. The money given was to also fund the extension of Olkaria one and Olkaria IV power station project targeted for completion by end of 2013.

The overall cost of the project is Sh83 billion and is being co-funded by KenGen, World Bank, European Investment Bank, Japan International Corporation Agency and French Development Agency, AFD.

Kenya is targeting to develop 5000 MW of geothermal power by year 2030 as stipulated in the country’s planning document Vision 2030.

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