UK to guarantee $58.7 M AfDB loan to upgrade Kenya transmission line
The AfDB and the UK have announced selected the Kenya’s Transmission Network Improvement Project as a beneficiary project under the Room to Run Sovereign transaction (R2RS).
Image for illustration purposes.
Kenya: The AfDB and the UK have announced selected the Kenya’s Transmission Network Improvement Project as a beneficiary project under the Room to Run Sovereign transaction (R2RS).
The African Development Bank and the UK have announced the selection of Kenya’s Transmission Network Improvement Project as a beneficiary project under the Room to Run Sovereign transaction (R2RS). Up to Ksh 9.6 billion ($58.7 million) of the Ksh 18.9 billion ($116 million) project cost corresponding to the climate mitigation component of the loan was facilitated by additional capital from the UK government guarantee. The project was approved last year, and it will extend and reinforce the country’s national electricity grid system and AfDB’s Last Mile Connectivity Program.
Announced at COP26 in November 2021, R2RS is helping the development finance institution lend more funding for critical climate change projects. Under R2RS, a Ksh 326 billion ($2 billion) guarantee is provided to the Bank by the UK government ($1.6 billion in cover) and City of London insurers ($400 million).
“This transaction is one of several projects constituting its lending programme through which the African Development Bank fulfils the call by stakeholders at COP27 for MDBs to innovate and scale up climate finance through the Multilateral Development Banks,” Kevin Kariuki, AfDB Vice-President for Power, Energy, Climate and Green Growth, said.
Source: Citizen Digital
#African Development Bank#Kenya#transmission line#Transmission Network Improvement Project#UK