A groundbreaking ceremony for the geothermal power project was recently held with representatives from Globeleq, the Geothermal Development Company (GDC), and the regional and national governments.
The letter of support granted to Globeleq insulates a private investor and the investor’s lenders from certain elements of country and political risk. This helps a firm to secure funding and gives a major boost to the security of the project. The firm had previously announced that the project would reach a financial close within the next two or three weeks, “subject to the remaining conditions precedent being fulfilled by the government.”
“We see that the current government is unlocking the barriers that were there,” commented Geothermal Development Company (GDC) Managing Director Paul Ngugi after confirming the news. GDC is managing the Menengai geothermal steam field.
