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Gulf Power Ltd
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 29418
RegionSub-Saharan Africa
SectorHeavy Fuel Oil - Thermal Power Generation
Environmental category:A
Date ESRS disclosedMay 31, 2011
Previous EventsInvested: December 6, 2013
Signed: November 8, 2012
Approved: October 31, 2012
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

Applicable Standards
Key Issues

& Mitigation


of Full


Overview of IFC's scope of review
IFC’s review included:

- Field visit to the proposed project site near Athi River area of Mavoko Municipality.

- Meetings with: Gulf Power management team; the area Chief and the village elders within a 5km radius of project site; the site hydro-geologist (from the Water Ministry); the assistant sales administrator from Superior Homes residential development; the agency managing director and the sewerage superintendent of the Mavoko Water and Sewerage Company; the representative of the municipal planning department of the municipal county of Mavoko; the director of compliance enforcement and other representatives of the National Environmental Management Authority (NEMA).

- Review of key documents such as Environmental and Social Impact Assessment for the power plant prepared by Nutek Solutions Ltd – April 2011; and Gulf Power human resources policy manual.
Project description
The project is the development of a greenfield 80 MW Heavy Fuel Oil (“HFO”) fired power plant, including a 66kv interconnector and backup metering equipment on a 20 years build-own-and-operate basis along the Nairobi –Mombasa highway in the Athi River area of Mavoko Municipality, Kenya (the “Project”). The Project will have a 20 year Power Purchase Agreement (“PPA”) with Kenya Power and Lighting Company (“KPLC”), the national transmission and distribution company. The PPA may be extended for 5 years based on mutual agreement between the Company and KPLC.

The developer of the Project is Gulf Power Limited (“GPL” or the “Company”), a special purpose company incorporated in Kenya by a consortium of Kenyan investors with a view to enter the power generation business in Kenya. The Project is one of 3 Independent Power Projects (“IPPs”) for which KPLC had sought Expressions of Interests (“EOI”), in June 2009. These IPPs were expected to generate 60-80 MW each using medium speed diesel engines with HFO as the fuel.

The projects were awarded through a competitive bidding process based on the lowest electricity charges. GPL submitted an EOI to bid for the Project. In the final bidding held on December 15, 2009, GPL was the lowest bidder for the development of an 80 MW plant on the Mombasa Road, Athi River Site and on that basis was awarded the concession.

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