An agreement has recently been signed between Metier and Tembo Power, the company developing the Kaptis hydroelectric project in western Kenya. Metier will participate in the financial closing of this project, which will produce 14.7 MW, by taking a 40% stake in it.
The financial completion of the Kaptis hydroelectric project in Kenya will take place by the end of the year. It is one of the points of the agreement recently concluded between the project developer Tembo Power, a company based in Ebene, Mauritius, and Metier Private Equity International, a company based in South Africa specialising in the financing of renewable energy and energy efficiency in Africa.
According to Tembo Power, the agreement with Metier will enable it to select the financial partners and complete the financing of the hydropower project which will result in the production of 14.7 MW from a run-of-river hydropower plant. It is a hydroelectric facility that operates independently of a water reservoir. Such a facility has less impact on the river and its biodiversity.
A 40% stake for Metier
Tembo Power began development of the Kaptis hydroelectric project in 2013, following preliminary studies conducted by its partner Humphrey Mulindi. The purpose of the study was to determine the real potential of the site selected for the future hydroelectric power plant.
The engineering, procurement and construction (EPC) contract for the future hydroelectric power plant will be executed by WK Construction, a company specialised in hydraulics. This company, based in South Africa, is one of the financial partners of the project, in which it holds a 20% stake.
The new investor, Metier, now holds a 40% stake. The South African-based financial company has decided to place this investment within the framework of its Metier Sustainable Capital International Fund II. It is a fund that targets investments offering social and environmental benefits as well as financial returns. Its investments are balanced between renewable energy projects (encompassing both grid-connected and distributed generation) as well as growth capital investments in other sectors, such as energy efficiency and the exploitation of resources such as water or waste management.
The remaining 40% of the Kaptis hydroelectric project is owned by Tembo Power. “We look forward to the prospects of the Kaptis project and, more broadly, the prospects of Tembo Power’s portfolio, which fits well with the fund’s strategic direction. The fund is focused on small and medium scale renewable energy projects. We want to invest in Kenya’s energy sector and provide clean energy to support the Kenya Power and Lighting Company’s (KPLC) electricity supply,” says Michael Goldblatt, Director of the Sustainable Capital International Fund II.
