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Hydropower plants for a cooperative of Kenyan tea growers
Project
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Signature date
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Location
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Kenya
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Financing tool
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Financing amount (Euro)
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13777900.248
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Financing details
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Loan of USD 15 M
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Customer
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KTDA Power
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Type of customer
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Company
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Project number
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PKE1097
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Environmental and social ranking
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B+
By financing seven small-scale hydropower plants, PROPARCO is supporting the energy supply of the factories of KTDA, Kenya’s main tea growers association. These facilities will provide access to energy for thousands of families and create employment.
Client presentation
Kenya Tea Development Agency Limited (KTDA) is owned by 600,000 farmers and has a mandate to promote the development of the tea industry among farmers. KTDA supports producers throughout the value chain, from production (input supply, technical assistance, prefinancing), to processing (management of 66 tea factories), logistics (transport, storage) and marketing. It manages 60% of tea production in Kenya.
Project description
Proparco’s loan will finance the construction of seven small-scale run-of-river hydropower plants. These plants will have a total capacity of 16 MW. They will supply twenty-four factories managed by KTDA and will be connected to Kenya’s power grid.
Project impact
By developing its own energy sources, KTDA will make its electricity supply for its tea factories reliable, while reducing its greenhouse gas emissions. This operation will also allow it to reduce its energy costs and thereby contribute to increasing incomes for 350,000 tea planters. This project will also contribute to rural electrification in the regions of Kirinyaga, Meru, Settet and Nyakwana. In addition, the hydropower projects will create several thousand temporary jobs during the construction phase and dozens of permanent jobs after their commissioning.