Globeleq & ATIDI Finalise the RLSF Agreement for the Menengai Geothermal Project
SOURCE: African Trade & Investment Development Insurance (ATIDI)
Cape Town, 19 June 2025: The African Trade & Investment Development Insurance (ATIDI) and Globeleq have finalized the agreement for the provision of a payment guarantee to the 35 MW Menengai Geothermal Project located in Nakuru County, Kenya. The payment guarantee, issued via ATIDI’s Regional Liquidity Support Facility (RLSF), covers the risk of non-payment by the Geothermal Development Corporation (GDC) and Kenya Power and Lighting Company (KPLC) under the Project Implementation and Steam Supply Agreement (PISSA) and the Power Purchase Agreement (PPA) respectively.
The collaboration between ATIDI and Globeleq was first announced during the 2024 Africa Energy Forum in Barcelona. With this agreement now executed and effective, the project and its lenders – the African Development Bank (AfDB), the Eastern and Southern African Development Bank (TDB), and the Finish Fund for Industrial Cooperation (Finnfund) – benefit from enhanced payment security ahead of the project’s scheduled commercial operations date. Once operational, the Menengai project will deliver clean and affordable baseload power to the national grid supply and significantly contribute to the Kenyan government’s goal of a clean energy mix by 2030.
Quote from Obbie Banda, Senior Underwriter & RLSF Coordinator
“We are pleased to have this agreement finalized. Whilst we have supported several projects in the region, this marks the first RLSF policy issued in Kenya, as well as the first in support of a geothermal project. This milestone confirms the bankability of the RLSF product for a leading project developer and for the DFI lenders involved in this project; it also demonstrates our commitment to moving from concept to execution of our innovative instruments.”
Quote from Edouard Wenseleers, Managing Director, Business Development, Head of East Africa, Globeleq
“Signing the RLSF agreement is a major milestone for our Menengai project, significantly enhancing the project’s risk allocation. We sincerely thank ATIDI for their continued support in reaching this landmark achievement. It is a great honour for Globeleq to contribute to the issuance of Kenya’s first RLSF policy in Kenya through the Menengai project. We hope this will pave the way for more renewable energy IPPs to benefit from this innovative instrument in the country.”
To date, ATIDI’s RLSF has supported nine renewable energy projects across four African countries, enabling 181.95 MW in new renewable energy capacity and mobilizing USD 323.7 million in total financing.
About ATIDI
ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD85 billion worth of investments and trade into Africa. For over a decade, ATIDI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s (S&P), and in 2019, ATIDI obtained an A3/Stable rating from Moody’s, which has now been revised to A2/Stable.
More about ATIDI: www.atidi.africa
Media registration link: https://www.atidi.africa/media-kit/
About the Regional Liquidity Support Facility (RLSF)
RLSF is a guarantee instrument provided by ATIDI to renewable energy Independent Power Producers (IPPs) that sell the electricity generated by their projects to state-owned power utilities, located in ATIDI member states that have signed the RLSF Memorandum of Understanding. RLSF was launched in 2017 by ATIDi and the German Development Bank, KfW Development Bank, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ); in 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards its continued implementation. RLSF has a capacity of USD153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public offtakers; in turn improving project bankability and ensuring that more projects reach financial close.
About Globeleq
Globeleq, which is owned by British International Investment and Norfund, is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating 1,794 MW in 17 locations across seven countries, with a further 485 MW in construction and more than 2,000 MW of power projects in development.
More details at www.globeleq.com.