Kenya seeks funding for energy project

12/05/2011 - Kenya property & investment news
Kenya seeks funding for energy project
The Kenyan government is hoping to secure a multi-million pound deal with a private partnership to improve the capacity of its sole crude oil refinery, Reuters reports.According to one of the country’s leading energy officials, £606.7 million worth of funding is needed to improve the facility, which has recently encountered a number of problems caused by a lack of investment.Securing the funding would allow the production of crude to be increased from 2.6 million tonnes to four million tonnes of crude per year."In total we need $1.05 billion. The government does not have that kind of money. We are going to look at innovative financing mechanisms to see if we can get long-term financing," said energy permanent secretary Patrick Nyoike.The energy department added that by converting the plant into a merchant refinery it will be able to source crude oil directly, process it and sell to oil marketers rather than receive oil from importers.Meanwhile, firms in Kenya looking to finance renewable energy projects will be able to benefit from a new fund.The project aims to allow manufacturers easier access to cash, the Xinhua news agency revealed.