Plans for a
delayed 300 MW wind farm in Kenya can now proceed after lenders agreed
to rely on the government’s assurance that it backed the plan, instead
of proper guarantees, the chairman of the project said. “Guarantees, we
are not being given. What we are getting is a letter of comfort, or
support, from the ministry of finance. This has now been agreed with
the lenders as an acceptable format so we can move forward,” Carlo van
Wageningen, chairman of LTWP, told Reuters in an interview. Kenya’s
government has been scratching its head over how to deal with demand
from lenders for financial guarantees. Kenyan law does not allow the
Treasury to put down a security for a private venture.
Kenya wind power plan gets government’s support letters
