This archive report was first published on 29 October 2019.
On October 29, 2019, Centum-owned renewable energy company Akiira Geothermal Ltd (AGL) announced plans to pursue a Sh19.5 billion loan cancellation after the European Investment Bank (EIB) withdrew its offer due to viability and environmental concerns.
According to AGL's chief financial officer Anthony Kahindi, the firm will begin fresh negotiations with the EIB and explore other financing options to raise capital for the Sh39 billion 140MW project in the Akiira Valley of Olkaria, Naivasha.
AGL is partly owned by Centum Investments, a business conglomerate linked to tycoon Chris Kirubi. The project aims to harness geothermal resources within 12 months, subject to confirmation.
Mr. Kahindi stated, 'We still have potential partners. EIB is one of them. Once we are done with assessing the resource and we finally confirm the resource, now we will be able to fully engage with them on financing details.'
Following complaints from environmental lobbies, the EIB deputy head of division Juan Manuel Sterlin Balenciaga announced on October 10 that the lender had withdrawn the Sh19.5 billion loan offer for the project.
Mr. Balenciaga explained, 'After careful consideration and due to the fact that the EIB has seen no progress on the Akiira Geothermal expansion project over the past three years, the EIB has formally decided not to pursue the appraisal of the project.'
