NAIROBI – Civicon, a local engineering and construction services provider, has signed a 25-year power purchase agreement with Kenya Power from its 35MW Menengai Geothermal power project near Nakuru . The deal signed in association with Civicon’s project partners, Ormat Technologies and Symbion Power, will facilitate the power purchase pact for the consortium’s OrPower Twenty-Two project.
Civicon is a subsidiary of Transcentury Ltd, an infrastructure company listed on the Nairobi Securities Exchange. Transcentury Group CEO Gachao Kiuna disclosed that 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). These two 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.
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.
“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,” Civicon Group CEO Jason Horsey said.
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