In a letter sent to LTWP project sponsors quoted by the Kenyan newspaper Busi- ness Daily, Johannes Zutt, the former World Bank country director for Kenya, stated that the "take-or-pay" provisions in the 20-year agreement would require consumers to pay for excess power generation.
The purchase price for the electricity produced by LTWP is below the current national average and as such will con- tribute to lowering average en- ergy costs," reads the statement.
The purchase price for the electricity produced by LTWP is below the current national average and as such will contribute to lowering average energy costs," reads the statement.
He cites yet another wind power project in Kenya--the 60MW Kinangop Wind Park project, which had to close down due to similar issues facing the LTWP.
Aldwych, which is also involved in Kenya's LTWP
, was set up in 2004 for the "purpose of developing, owning and operating power generation, transmission and distribution projects in emerging markets, primarily Africa.
Aldwych will also oversee construction and operations of the project on behalf of LTWP
The Kenya Electricity Transmission Company (Ketraco), with concessional funding from the Spanish Government, is constructing a double circuit 400kv, 428km transmission line to deliver the LTWP
electricity along with power from other future plants to the national grid.
is a key deliverable under the Kenyan Government s commitment to scaling up electricity generation to 5,000 MW and to provide cost-effective renewable power to the Kenyan consumer.
This has, however, not distracted Carlo Van Wageningen, the chairman of LTWP, or the African Development Bank (AfDB), which is the lead debt financing arranger, with South Africa's Standard Bank and Nedbank Capital coming in as co-arrangers.
The LTWP project has already been endorsed by the Kenyan government and construction contracts awarded to Aldwych International of the UK and Danish firm Vestas.
If the LTWP
scheme proves a success, there is also the option to develop other wind farms, either in the same area, or elsewhere in the country.
Chairman of LTWP
, Carlo van Wageningen said, We are extremely pleased to have received notification of project registration.