OLKARIA II EXTENSION

Extension of the powerhouse, substation and switchyard of the existing 70 MW geothermal station and installation of a third steam turbine and generator set of 35 MW capacity. The project includes steamfield development, of which the drilling and fitting out of geothermal and re-injection wells is already complete.

The project is aimed at enhancing the use for electricity production of underground steam, an indigenous renewable source of energy, in order to meet the growing demand for electricity in Kenya on a least cost basis.

The main environmental impacts are land use and visual; condensed steam effluents will be re-injected into the steam reservoir. The findings of the Environmental Impact Assessment for the existing plant, established in 1994 in accordance with national regulation, are still valid; an update was made in 2004 for the extension project and is being submitted to the relevant Kenyan Authority (NEMA) for approval. The EIB will monitor the implementation of recommended environmental action.

The promoter has launched open tendering procedures for consultancy services, with publication of the prequalification notice in the OJEU and other media. Similarly, publication of the invitation for tenders for the turnkey contract, covering the majority of works and supplies, is planned for May 2005.

Electricity generation