GDC – Bogoria-Silali Block Geothermal Power Plant 2000 MW – Kenya - Project Profile
"GDC – Bogoria-Silali Block Geothermal Power Plant 2000 MW – Kenya - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.
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Geothermal Development Co. Ltd (GDC), a state-owned corporation, plans to undertake the Bogoria-Silali Block Geothermal Power Plant in Northwestern Kenya.
The project involves the construction of a 2,000MW geothermal power plant, which will be developed in four phases. The first phase covers the construction of an 800MW geothermal power plant, which will be developed in eight units of 100MW each.
The second, third and fourth phases involve the construction of geothermal power plants each with 400MW generation capacity and 210 wells will be drilled using eight rigs for the entire project.
The Silali-Bogoria Block comprises of Baringo, Bogoria, Paka, Arus, Chepchuk, Korosi and Silali geothermal fields.
The project will be developed under DBFOM (Design, Build Finance, Operate, and Maintenance) basis. The investors will have to develop the project under a PPP (Public Private Partnership).
In March 2011, GDC issued the expression of interest for the investor for first phase the project with August 8, 2011, as the submission deadline, however in September 2011, nineteen companies, including General Electric, Mitsubishi Corp., Toshiba and France's Alstom SA submitted bids to GDC to develop the first phase.
In the first quarter of 2012, the expression of interest was issued for the shortlisted parties, which will include identifying appropriate financial structures and developmental methodology with the submission deadline on September 21, 2012.
In August 2012, GDC extended the closing date due to the low number of bidders.
GDC received several requests for an extension citing the need for more time for bidders to prepare bid documents. In order to allow for competition, GDC decided to extend the closing date.
The award of DBFOM contract will be subject to the investor negotiation on the Power Purchase Agreement (PPA) with Kenya Power and Lighting Company Limited. The Investors role includes financing, design, construction, operation and maintenance of the power plants. In addition, subject to the positive feasibility study, GDC will require the selected investors to partner in financing the steam development. Funds obtained from the investors, on terms and conditions to be agreed, will be a loan to GDC which will be repaid from steam sales revenues.
In January 2013, initial project development activities have commenced for the first phase.
In January 2013, GDC issued tenders for supply of Environmental Plant Equipment (Backhoe Loader) with submission date March 19, 2013, and Fabrication and Delivery of Discharge Testing Equipment with submission date March 20, 2013, respectively.
The project is being funded by KfW Development Bank, US Exim Bank, United Nations Environment Programme (UNEP), Japan International Cooperation Agency (JICA) and Government of Kenya.
In January 2013, GDC has received US$400 million, of which US$300 million from U.S. Export-Import Bank (Exim Bank) and US$100 million from German development bank KfW.
In July 2014, German development bank KfW has accepted to provide US$109 million funding for the development of the first phase of the project. The funds will go for the drilling of up to 20 exploration and appraisal wells. In addition, the money will also be used for the development of infrastructure, execution of a feasibility study, testing of the exploration and appraisal, as well as for consulting services.
In August 2014, GDC issued tender for drilling 15 to 20 geothermal wells using two rigs for the first phase and expected to be with opened in November 2014.
In March 2015, GDC invited request for proposal (RFP) for the implementation consultant for monitoring and supervision of drilling works, the supply of water services, project management and knowledge transfer and training of GDC’s staff.
In the first quarter of 2016, the Government of India (GoI) planned to invest US$200 million in the project. GoI has completed the studies and is negotiating terms with GDC. However, the final decision is yet to be made.
On April 6, 2016, Hong Kong Off-Shore Oil Services Limited (HOOSL) has been appointed to drill 15-20 geothermal wells under the first phase.
In February 2017, JICA which assisted GDC to review the master plan has submitted the re-evaluated draft report regarding geothermal resource potential of the project.
GDC is seeking for an investor to develop the first phase and scope of the investor includes financing, design, construction, operation and maintenance of the power plant.
In July 2017, HOOSL commenced exploration and drilling works on the first phase. The company is now developing water systems, with more than 20 wells to be drilled in Korosi, Paka and Silale fields.
Study activities are underway.
The project involves the construction of a 2,000MW geothermal power plant at Bogoria-Silali Block in Northwestern Kenya.
The US$3,100 million project includes the following:
1. Construction of 800MW geothermal power plant in the first phase
2. Construction of 400MW geothermal power plant in the second phase
3. Construction of 400MW geothermal power plant in the third phase
4. Construction of 400MW geothermal power plant in the fourth phase
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