Kenya is soon to commence construction of Kaptis hydropower project. A joint development agreement, to bring the project through to financial close and construction in 2020, has been signed between the project owner and an equity fund manager.
The agreement was signed between project developer, Tembo Power with Metier, an independently owned private equity fund manager, together with its partner WK Construction, a leading contractor in the field of hydropower in sub-Saharan Africa.
Kaptis hydropower project
The deal allows the partners to appoint lenders and prepare for financial closing, expected this year, and to start construction. The 14.7MW hydropower project is located in western Kenya.
Tembo Power began development of the Kaptis hydroelectric project in 2013, following preliminary studies conducted by its partner Humphrey Mulindi. The purpose of the study was to determine the real potential of the site selected for the future hydroelectric power plant.
The hydropower project will result in the production of power from a run-of-river hydropower plant. It is a hydroelectric facility that operates independently of a water reservoir. Such a facility has less impact on the river and its biodiversity.
The engineering, procurement and construction (EPC) contract for the future hydroelectric power plant will be executed by WK Construction, a company specialized in hydraulics. This company, based in South Africa, is one of the financial partners of the project, in which it holds a 20% stake.
Metier, now holds a 40% stake. The South African-based financial company has decided to place this investment within the framework of its Metier Sustainable Capital International Fund II. It is a fund that targets investments offering social and environmental benefits as well as financial returns. The remaining 40% will be owned by Tembo Power.