Sosian Menengai Geothermal Power Ltd has lost a multi-billion funding deal by the African Development Bank for the construction of the 35-megawatt geothermal power plant in Menengai, Nakuru.
Firm loses billions in funding after Gideon Moi buys majority shares
Gideon Moi recently bought a majority stake in the company back from billionaire industrialist Narendra Raval.
Sosian was one of the businesses given exclusive rights to develop a steam plant under the build-own-operate model by the state-owned Geothermal Development Company (GDC).
Ormat Technologies and Quantum Power are the two other firms selected to build a 35 MW steam power plant each on a public-private partnership basis.
According to a report by Business Daily, the AFDB pulled the funding citing ownership of Sosian by Baringo Senator Gideon Moi.
Moi recently bought a majority stake in the company back from billionaire industrialist Narendra Raval.
AfDB has sought a change of ownership before it can grant money to Sosian Menengai Geothermal Power, according to two persons familiar with the situation.
“The bank is currently engaged on the Quantum Power East Africa (QPEA) project only. It has previously been engaged on the Sosian project as well but it requires a change in shareholding before it can engage further,” revealed one of the sources whose identity was withheld.
It's unclear why the African Development Bank isn't interested in partnering with the Moi family.
Senator Moi's son Kigen Moi and Anastacia Kioko Mululu are named as directors on Sosian's board of directors.
GDC commenced drilling in the Menengai field in February 2011 and has drilled 34 wells with a proven output of 137MW to date.
The agency has spent Sh39.6 billion on the Menengai project, which includes drilling, purchasing seven rigs, and developing infrastructure including as roads, a water pipeline, and a steam collection system.
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