The grant is also likely to improve infrastructure requirements needed for proper project implementation.
AUC, the German Federal Ministry for Economic Cooperation and Development, the EU-Africa Infrastructure Trust Fund and KfW have formed the Geothermal Risk Mitigation Facility (GRMF) to promote investment in such power generation in Eastern Africa.
The participants have allotted €50m ($62m) for such grants and have also planned to increase the fund.
GRMF provides financial support in the form of a grant to winning applicants for surface studies and exploration drilling and testing programs.
It provides 20% of approved allowable costs for infrastructure required for eligible surface studies or eligible drilling programs; 80% of approved allowable costs of Surface studies.
It also provides 40% of approved allowed costs for the exploration drilling and testing program (ex¬cluding infrastructure costs); 30% of the developer’s share of the approved allowance and expended costs for the drilling and testing program in case of continuation of the project.
