Centum’s geothermal unit to pursue Sh19.5bn cancelled EIB loan

EIB East Africa head Catherine Collin. FILE PHOTO | NMG  

By BRIAN NGUGI
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Summary

• Centum-owned renewable energy company Akiira Geothermal Ltd (AGL) chief financial officer Anthony Kahindi says the firm will begin fresh negotiations with the European Investment Bank (EIB) after it cancelled a Sh19.5 billion loan over viability and environmental concerns.

Centum-owned renewable energy company Akiira Geothermal Ltd (AGL) chief financial officer Anthony Kahindi says the firm will begin fresh negotiations with the European Investment Bank (EIB) after it cancelled a Sh19.5 billion loan over viability and environmental concerns.

Mr Kahindi said the firm, partly owned by business tycoon Chris Kirubi-linked Centum Investments, is also in touch with other partners to raise capital for the Sh39 billion 140MW project in the Akiira Valley of Olkaria, Naivasha subject to confirming geothermal resources within 12 months.

ALSO READ: EIB cancels Sh19.5 billion Centum geothermal loan

“We still have potential partners,” said Mr Kahindi. “EIB is one of them. Once we are done with assessing the resource and we finally confirm the resource, now we will be able to fully engage with them on financing details.”

Following complaints from lobbies, the EIB deputy head of division Juan Manuel Sterlin Balenciaga said on October 10 that the lender had withdrawn a Sh19.5 billion loan offer for the project.

“After careful consideration and due to the fact that the EIB has seen no progress on the Akiira Geothermal expansion project over the past three years, the EIB has formally decided not to pursue the appraisal of the project,” said Mr Balenciaga.

“The project has been withdrawn from the EIB’s website and the project sponsors have been informed,” he said.

Mr Balenciaga said EIB had taken all the allegations seriously and will make effort to ensure that EIB’s environmental and social standards are respected.