Lake Turkana Wind Power (LTWP) will receive $228 million from the African Development bank (AfDB) for 300 megawatt (MW) wind farm project at Lake Turkana, in Kenya. The total cost of the project is estimated to be $760 million, and AfDB is providing 30% of the cost. LTWP Director Chris Staubo told New Energy Finance that the company's loan was for 10 years at a rate of 9%, which is higher than the market levels. The wind farm has received all necessary local licences and environmental approval.

LTWP will use 360 of the Vestas Wind Systems A/S V52 turbine, each generating 850 kilowatt.

AfDB is leading a syndicate of lenders including the International Finance Corporation, Industrialisation Fund for Developing Countries (IFU), Proparco and KfW (German bank).

Staubo said that AfDB had been on board from the beginning to mitigate political risk’. With the AfDB on side, political instability is less likely to affect the project.

AfDB approached LTWP first, with the aim of making headway into private initiatives in Kenya. Private intitiatives are good option because ‘the work is better and projects come online faster’, according to Staubo. LTWP is meeting with AfDB, later in January, 2009 to formalise the loan agreement.