Geothermal Energy Development Facility – KfW

IPA advised the German bank KfW on how to facilitate geothermal energy investment in the countries along the African Rift by removing exploratory and financial investment risks. IPA prepared risk mitigation packages for a selection of specific projects on the priority pipeline (in Kenya, Tanzania, Ethiopia, Eritrea and Djibouti) to be implemented via a revolving fund. The work involved identifying the main geothermal development risks and mitigation mechanisms already available (including those from IFIs, such as the World Bank’s Risk Guarantees); developing the ARGeo Facility so that it was responsive to market needs; analysing the legal and regulatory framework in the project host countries to address any country-specific issues; and developing financing, guarantee mechanisms and project structures to address any other gaps in provision.