Kenya to benefit from Ksh 600B Japan, AfDB Africa energy deal
The African Development Bank (AfDB) and the Government of Japan have entered an agreement which will see Japan extend up to USD 6 billion (Ksh 600 billion) in both concessional and non-concessional finance to increase energy access in Africa.
The Japan-Africa Energy Initiative (JAEI) is structured to enable regional countries achieve universal access to energy by 2025.
AfDB has in recent times increased its focus on Kenya’s energy sector in a bid to bring down the cost for the population.
Kenya has made electrical power sources diversification a priority with projects such as development of the Menengai Geothermal power project, financed by AfDB to the tune of USD503 million (Ksh 50 billion). The plant is expected to have a production capacity of 400 MW to provide reliable, clean and affordable electricity to thousands of households and industries.
In June, AfDB announced another USD135 million (Ksh 13.5 million) loan for the second phase of the Last Mile Connectivity in Kenya.
“I would like to thank the Government of Japan for their longstanding support to the AfDB, and to the African continent. I welcome Japan’s support for the New Deal on Energy for Africa through this Initiative, which is another milestone in the Bank’s long-standing collaboration with Japan and a strong endorsement of the Bank’s first High 5 to Light Up and Power Africa,” the Bank’s President, Dr. Akinwumi Adesina, said during the agreement signing in Addis Ababa.
AfDB and Japan government will work on the implementation arrangements over the coming weeks to effectively support projects as early as the end of 2017.
The Japan-Africa Energy Initiative will support the full range of activities associated with public and private sector energy projects – preparation, construction and operations, through a mix of financing and technical assistance.
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