NAIROBI (Reuters) - Kenya's CfC Stanbic Bank and China's ICBC Bank will finance a 83 megawatt (MW) thermal power plant in the African country costing $108 million, the Kenyan bank said on Wednesday.
The heavy fuel oil plant will be built by private power company Triumph Kenya. ICBC will provide $80 million of the debt financing while CfC Stanbic said in a statement it will provide the rest.
Kenya plans to add 5,000 MW of power supply capacity to the existing 1,664 MW generated by 2017.
The country suffers from frequent blackouts due to supply shortfalls and an aging grid, with many businesses and wealthy households turning to standby generators.
Standard Bank, CfC's parent company, said the World Bank's Multilateral Investment Guarantee Agency (MIGA) would provide insurance of $102.5 million, in part to cover a breach of contract should distributor Kenya Power fail to adhere to its 20-year power purchase agreement with Triumph.
Earlier this month, CfC Stanbic Bank said it was also providing $90 million in debt for a $150 wind power generation project in the country.
ICBC has a 20 percent stake in Standard Bank.