https://www.engineeringnews.co.za

Kenya's Centum to finalise power plant funding this year

13th June 2018

By: Reuters

  

Font size: - +

Kenya's Centum Investment Company said on Wednesday a $2-billion, 1 000 MW coal-fired power plant it has a stake in is expected to reach financial close this year.

The Amu Power consortium that includes Centum, won a contract to build the plant in Lamu. The project has attracted criticism from conservationists who say it will pollute the island, an ancient Swahili settlement on the coast that is a tourist destination and a UN World Heritage site.

"We have secured the debt. It is about $1.5-billion. The equity tranche is about $500-million, which is now fully funded," Centum CE James Mworia told an investor briefing, adding that two additional steps were needed to get to financial close but did not specify what they were.

Amu Power signed an agreement last month with General Electric to design and build the plant, and the deal will also see GE, through its affiliates, acquire a stake in Amu.

Amu Power and Ministry of Energy officials say the technology General Electric will use is the most modern and will reduce the emissions from burning coal.

Centum said its pretax profit dropped 64% to 3.15-billion shillings ($31.16-million), hurt by lower property valuation gains, a delay in recognising proceeds from the sale of one of its businesses, and the broader economic downside pressures in Kenya last year.

Earnings from Centum's sale of GenAfrica Asset Managers, whose transactions were signed in the year to end-March, had not been finalised by March 31 and will be reflected in the financial year to end-March 2019.

Its performance for the year was also affected by a prolonged election period in Kenya, slowing private sector credit growth and the impact of drought, it said in a statement.

The firm, which invests in listed firms and private companies from drinks makers to property developers, said net asset value per share, a key measure of performance for investment firms, rose to 73.2 shillings from 67.3 shillings the previous year.

Its shares were trading flat at 38.00 shillings on the Nairobi Securities Exchange at 10:07 GMT, representing a discount when compared with its net asset value.

Edited by Reuters

Comments

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.063 0.113s - 175pq - 2rq
Subscribe Now