Deal #4123

Location #1

Spatial accuracy level
Exact location
Location
Hell's Gate National Park, Naivasha, Kenya

Latitude
-0.9170727463385356
Longitude
36.335793933868445
Target country
Kenya
Comment on location
The coordinates for the site are: 00 54’ 57.73” S and 36 20’6.64”E.

Land area

Intended size (in ha)
8000
Size under contract (leased or purchased area, in ha)
[2013] 8000
Comment on land area
the ESIA describes the surrounding area as a parcel of 75769 acres (= 30663 ha) and states "part of this land would need to be acquired" for the project (see ESIA Report ix). It additionally states that 1461 ha are envisaged for the project, affecting 3 villages (ibid.: xi). In its Daily Nation Statement (2013-7-30) the company (KenGen) however claims that land has been acquired (no concrete info regarding size), that this acquisition affects 4 villages and it claims its intention to expand in neighbouring areas. The Olkaria geothermal field occupies a circular area of about 80km2.

Intention of investment

Intention of investment
Renewable Energy
Comment on intention of investment
geothermal project

Nature of the deal

Nature of the deal
Outright Purchase

Negotiation status

Negotiation status
[2010] Intended (Expression of interest)
[2013] Intended (Under negotiation)
[2013] Concluded (Contract signed)
Comment on negotiation status
State-supported Export-Import Bank of China signed the concessional loan agreement with finance minister Uhuru Kenyatta to help develop the 140 megawatt geothermal plant in 2010.

Implementation status

Implementation status
[2013] Startup phase (no production)
[2014] In operation (production)
Comment on implementation status
Olkaria IV started commercial operation in September 2014

Contract farming

Contract farming
No

Number of jobs for foreigners created

Jobs created (foreign)
Yes

Number of domestic jobs created

Jobs created (domestic)
Yes
Comment on jobs created (domestic)
In 2013 the domestic workers went on strike over low wages and poor working conditions.

Operating company

Operating company
Comment on investment chain
co-financed by the Kenyan government, the World Bank, and the European Investment Bank, among others.

 

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Data source #1

Data source type
Media report
File
Date
2013-07-29
Comment on data source
IC Magazine- Forceful evictions of Maasai- a recipe for tribal clashes in Kenya

Data source #2

Data source type
Company sources
File
Date
2013-01-01
Comment on data source
website of one financier (the European Investment Bank)

Data source #3

Data source type
Company sources
File
Date
2010-04-21
Comment on data source
Non Technical Summary (NTS) of the Environmental Impact Assessment (EIA) - Olkaria IV (Dome)

Data source #4

Data source type
Company sources
File
Date
2013-01-01
Comment on data source
Climate Fiance options EIB Olkaria I and IV GeoThermal Extension (Kenya)

Data source #5

Data source type
Media report
File
Date
2013-07-30
Comment on data source
URL no longer working (http://www.nation.co.ke/-/1148/1148/-/xvvu7uz/-/index.html) Daily Nation: KenGen Statement "Clarification on Naivasha Evictions"

Data source #6

Data source type
Media report
File
Date
2015-02-20
Comment on data source
Kenya’s Largest Geothermal Power Complex Starts Commercial Operation

Data source #7

Data source type
Media report
File
Date
2012-12-07
Comment on data source
Another thing Utah Could learn from Kenya: Olkaria IV Geothermal Plant to be largest in World

Data source #8

Data source type
Media report
File
Date
2014-10-23
Comment on data source
Kenya Opens World’s Largest Single Turbine Geothermal Plant

Data source #9

Data source type
Media report
File
Comment on data source
Project 8646 : Olkaria IV Geothermal Project

Data source #10

Data source type
Media report
File
Date
2013-01-14
Comment on data source
Think Geoenergy- Workers on strike at Olkaria IV project site in Kenya

Data source #11

Data source type
Media report
File
Date
2010-04-13
Comment on data source
Think Geoenergy- China provides US$93 million to Kenyan geothermal development

Data source #12

Data source type
Media report
File
Date
2013-07-30
Comment on data source
Kenyan TV- Naivasha land row between Narasha community and Kengen. URL no longer working (http://www.kenyan-tv.com/naivasha-land-row-between-narasha-community-and-kengen/)

Data source #13

Data source type
Company sources
File
Date
2013-01-01
Comment on data source
Kengen Website- Ongoing projects

Consultation of local community

Community consultation
Free, Prior and Informed Consent (FPIC)
Comment on consultation of local community
according to the company's ESIA report

How did the community react?

Community reaction
Mixed reaction

Displacement of people

Comment on displacement of people
240 families have been evicted from Narasha and Olomayiana Kubwa villages in Naivasha county. The investors are accused of being responsible for the evictions, but one party (KenGen) disclaims and states that the villages where the evictions took place are not part of the land acquired for the project and that their interest in the area affected by the evictions is only "a small portion".

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The company claims to have finalized negotiations with Project-Affected Persons (PAPs) on "a mutually-acceptable resettlement agreement" (see Daily Nation 2013-7-30)

Former land owner (not by constitution)

Former land owner
Private (smallholders)
Community
Comment on former land owner
according to ESIA Report (p. i) the affected land is privately owned (ranch and company); moreover Massai and Kikuyu dispute about the land ownership

Former land use

Former land use
Commercial (large-scale) agriculture
Smallholder agriculture
Conservation
Comment on former land use
Part of the plant falls within Hell's Gate National Park

Former land cover

Former land cover
Cropland

In country processing of produce

In country processing of produce
Yes

Overall comment

Overall comment
KenGen has two more geothermal power plants in that area, but those were negotiated before 2000. Olkaria IV is the largest geothermal power plant in the world. State-supported Export-Import Bank of China signed the concessional loan agreement with finance minister Uhuru Kenyatta to help develop the 140 megawatt geothermal plant in 2010.

May 2, 2019, 4:01 p.m.

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Jan. 17, 2018, 11:01 a.m.

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Jan. 17, 2018, 10:34 a.m.

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May 10, 2016, 4:23 p.m.

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June 27, 2014, 5:07 p.m.

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Nov. 1, 2013, 3:40 p.m.

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Nov. 1, 2013, 2:32 p.m.

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Oct. 4, 2013, 5:29 p.m.

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Oct. 4, 2013, 5:26 p.m.

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