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25 February 2014.

DANISH RISK CAPITAL CONTRIBUTES TO FINANCING OF AFRICA’S LARGEST WIND FARM

On Monday 24 March, the final agreements on the financing of the largest wind farm in Africa, Lake Turkana Wind Power in Kenya, were signed. IFU and EKF contribute to the total financing of approx. DKK 4.5 billion, and Vestas is to deliver 365 wind turbines to the wind farm which is expected to be ready by 2017.

During the last six years, IFU – Investment Fund for Developing Countries has worked intensely on the financing of Lake Turkana. IFU contributes with approx. DKK 100 million in share capital and has been instrumental in getting the total financing of approx. DKK 4.5 billion in place through its network of other European development funds, among others.

Lake Turkana is an important project since it will help Kenya in a climate-friendly way to increase its production of power which is quite essential to the further development of the country and at the same time the project is positive for Danish trade and industry, says Tommy Thomsen, CEO of IFU.

365 wind turbines from Vestas

Lake Turkana Wind Power will consist of up to 365 wind turbines based on the model V52-850 kW from Vestas which will be able to produce around 20% in total of Kenya’s current installed electricity generating capacity.

The wind farm is located near Lake Turkana in the northern part of Kenya since the wind conditions here are ideal with strong predictable wind streams yielding a high efficiency. However, the location does require the construction of a 428 km double circuit kV transmission line as well as a 300 km access road for transportation and service.

EKF (Danish Export Credit Agency) contributes with export credits

EKF is also supporting the wind farm in Kenya. EKF is ready to issue guarantees at around one billion Danish kroner in total to the two lenders behind the project: The European Investment Bank (EIB) and African Development Bank (AfDB).

In order to carry out large projects as Lake Turkana Wind Power, it is necessary to have a wide group of investors and financial cooperation partners – each contributing with their special expertise. In this case, this project has been a great success – thereby ensuring Danish exports.

Lake Turkana Wind Power is a complex project in a challenging country but it is supported by a strong group of Danish and internal cooperation partners, says Anette Eberhard, CEO of EKF.

Final agreement

On Monday, 24 March, the final investment agreements was signed in Nairobi, Kenya, and Natalia Svejgaard, Investment Director of IFU, was present.

Further information:
IFU: Communication Director Rune Nørgaard, tel: +45 22 68 75 60

EKF: Chief Communications Consultant Ole Lindhardt, tel: +45 20 18 39 52