Kenya

Executive Directors approved the Partial Risk Guarantee (PRG) for the Private Sector Power Generation Support Project in the Republic of Kenya in the amount of US$ 166... Show More + million on the payment terms and conditions set out in the President's Memorandum. Executive Directors also approved the proposed procedure to process a US$5 million expansion option for the Olkaria III geothermal sub-project. Executive Directors noted the project's alignment with the Bank's Country Partnership Strategy for the Republic of Kenya and with the foundation, pillars and key instruments of the World Bank Group Africa Strategy, in particular by strengthening the country competitiveness and employment opportunities. Executive Directors also underscored the key role of the Project in supporting the Government's strategy to attract private sector investment into the energy sector to spur economic growth and job creation. They commended the Government and the Bank, working in coordination with International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), for supporting an efficient risk mitigation package that helped Kenya attract private sector financing for urgently needed power generation, given Kenya's limited available fiscal space in the context of the global economic slowdown. They encouraged the Bank to continue to expand Kenya's energy generation options, including development of lower-carbon and lower-cost alternatives, and further encouraged replication of this project in other regions. Lastly, Executive Directors commended the team for working with the Government to ensure that appropriate reform and governance measures had made the sector attractive for investment. Show Less -