Kenya: AfDB offers grant for power deals
30 January 2014
The African Development Bank (AfDB) will provide a €1 million (Sh117.2 million) grant to help governments design power purchase agreements and reduce disputes with investors in renewable energy.
The grants of between €400, 000 (Sh46.8 million) and Sh117.2 million per project will be given through the bank's African Legal Support Facility. The money will be used to hire lawyers when negotiating power purchase agreements with investors on behalf of African nations seeking to generate power.
ALSF director and CEO Stephen Karangizi said it could cost up to $1,000 (Sh85,000) per hour to contract expert lawyers when drafting a power purchase document.
However, Mr Karangizi noted, ALSF can negotiate at half the charges.
"With our engagement it could cost between $300 and $500 per hour," he said on Monday during the opening of a workshop on power purchase agreements in Nairobi.
Original article by Neville Otuki