CFP UK Holdings Limited (CFP), a company based in the United Kingdom, is set to acquire a 31.25% stake in Lake Turkana Wind Power (LTWP).
Lake Turkana Wind Power owns a wind-powered electricity generation plant in Loyangalani, located in Marsabit county, with 310 megawatts (MW) capacity.
LTWP announced that they will submit an application to the Energy and Petroleum Regulatory Authority seeking approval for the acquisition agreement.
Subject to relevant regulatory approvals being obtained and other various condition precedents being satisfied in relation to the proposed transaction, CFP intends to partner with the existing shareholders of the company to ensure the success of the 310MW wind-powered electricity generation plant at Loyangalani, Laisamis district, Kenya.
Lake Turkana Wind Power
LTWP is owned by six shareholders, including Anergi Turkana Investments Limited, KP&P Africa B.V, Danish Climate Investment Fund I K/S, Vestas Eastern Africa Limited, Finnfund - the Finnish Fund for Industrial Cooperation, and Sandpiper Ltd.
The value of the forthcoming deal is unknown.
With a capacity of 310 megawatts, LTWP can power up to one million homes.
According to Nation, in 2009, it signed a power purchase agreement (PPA) with Kenya Power and Lighting Company (KPLC) requiring LTWP to finance, design, procure, construct, install, test, commission, operate, maintain, and exclusively sell net electricity output to KPLC.
Meanwhile, KPLC was obligated to evacuate all net electric power from LTWP once commissioned for 20 years.
Although LTWP commissioned its power plant on January 27, 2017, the government's failure to complete the evacuation line until September 24, 2019, resulted in delays and hefty penalties to taxpayers.
For instance, two years ago, taxpayers paid a KES 18 billion penalty due to the 381-day delay in completing the 428km high-voltage power line from Marsabit to Suswa substation in Narok, the main interchange for power from various sources.
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