Summary of Proposed Investment
Project Number
8917
Company Name
Tsavo Power Company Limited
Date SPI Disclosed
Jun 25, 1999
Country
Kenya
Industry
Infrastructure
Status
Completed
Sector
Light Fuel Oil - Thermal Power Generation
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Sep 16, 1999
Signed : May 10, 2000
Invested : Aug 11, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name: | Kenya: Kipevu II |
Region:Sub-Saharan Africa
Sector:Power
Project No:008917
Projected Board Date:August 5, 1999
Company Name:Tsavo Power Company Limited (TPC)
Technical Partner and/or Major Shareholders
The project will be sponsored by 4 main shareholders: Wartsila NSD Power Development Inc. (Wartsila), the principal developer, with 23%; Cinergy Global Power Ltd. and Industrial Promotion Services(Kenya) Ltd., who through a joint-venture will be the lead shareholder with 47%; and the Commonwealth Development Corporation with 30%. IFC is expected to take up to a 10% equity interest reducing Wartsila''s share to 13%. IFC has extensive working experience with all of the sponsors.
Project Cost Including proposed IFC investment
The total project cost is US$84 million. IFC''s proposed investment is a US$17 million "A" Loan, a US$26.7 million "B" Loan/DEG, a US$2 million "C" Loan and up to US$2 million in equity investment.
Location of project and Description of site
The project will be located on the outskirts of Mombasa, which is Kenya’s second largest city (after Nairobi). The site is adjacent to a similar state-owned project known as Kipevu I, and near Mombasa Port.
Description of Company and Purpose of Project
Over the past few years Kenya has been experiencing epidemic brown-outs and load shedding, a situation which is stifling economic growth. The system operates with practically no reserve margin and, with 80% of its capacity coming from hydropower, is particularly vulnerable to hydrological variations. Unable to fund new generation capacity, the Government of Kenya invited the private sector into power generation in 1996, choosing also to diversify into thermal resources.
Kipevu II, which will be Kenya''s third IPP, is a 74 MW diesel power station burning residual fuel oil No. 6 to be developed under a build-own-operate (BOO) scheme. The project was awarded to Wartsila following an international competitive bidding process. Although bid as a mid-peak plant to provide power locally and to act as a back up to the hydroelectric system, the prevailing electricity shortage in Kenya will require the plant to be base-loaded for at least the first few years of operation. The capacity and output of the plant will be sold to Kenya Power & Lighting Company Ltd. (KPLC), the national transmission and distribution utility, under a 20 year Power Purchase Agreement (PPA) signed with Tsavo Power Company Limited (TPC), a special purpose project company formed by the Sponsors. Affiliates of Wartsila will act as the Engineering/Procurement/Construction contractor and the Operations & Maintenance contractor for the project.
Environmental Category and Issues
This is an environmental review category B project. Issues include air emissions and ambient air quality impacts, noise, water supply and liquid effluents, fuel transmission and spill control, liquid and solid waste disposal, fire protection and emergency response, general workplace safety, and cumulative impacts from the project and the adjacent Kipevu I project. The plant will be equipped with a 45 m height stack, an acoustically insulated power house, and fuel oil storage tanks with complete containment to prevent spills. A comprehensive Environmental Action Plan was prepared. KPLC is independently building a transmission line that is not directly linked to this project. IFC is assisting KPLC to ensure that resettlement associated with this transmission line will be carried out in accordance with IFC’s requirements.
The is from the InfoShop.
| Host country location of environmental documents | Tsavo Power Company Limited office in Nairobi, Kenya |
Date SPI sent to InfoShop: June 25, 1999
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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