Development of the project
In 2006 the founding fathers decided to investigate the wind resource at Lake Turkana, in north-west Kenya. They installed the first of 10 wind measurement masts and appointed the German company DEWI to carry out wind measurement studies.
As the first promising results from the wind measurement study came in, the decision was taken to carry out a full feasibility study for the project, with the assistance of various consultants including the Finnish company VTT International and the Dutch companies DNV-GL and Mammoet International.
In the meantime, the KP&P Africa B.V. consortium was formed, with the founding fathers and other Dutch and Kenyan companies and individuals. This consortium provided the early stage development capital for the LTWP project company.
A financial model was developed and in 2008 negotiations began with the Kenyan power company, KPLC, on the first wind-power purchase agreement (PPA) in sub-Saharan Africa. The negotiations culminated in an agreed-form PPA in December 2009, which was superseded by a amended and restated PPA in May 2013.
In 2010 KP&P entered into an equity agreement with Aldwych, and in 2011 Vestas, Norfund and IFU joined the equity group, followed by Finnfund and Sandpiper Ltd. in 2013. Today, these seven companies form the LTWP consortium.
In 2011 African Development Bank was given the assignment to structure the financing of the project, together with NedBank and Standard Bank. The project finally reached its financial close in December 2014. Other financiers involved in financing the project include European Investment Bank, FMO, DEG, Proparco and Triodos.
In January 2015, construction work for the project began. The building consortium comprises Vestas, Siemens, RXPE, Civicon and SECO. Management is in the hands of Worley Parsons as construction manager.