67232
           Republic of Kenya: Private Sector Power Generation Support Project

                               SUMMARY OF DISCUSSION

                              Meeting of the Executive Directors

                                          February 28, 2012



      Executive Directors approved the Partial Risk Guarantee (PRG) for the Private Sector
Power Generation Support Project in the Republic of Kenya in the amount of US$ 166 million
on the payment terms and conditions set out in the President’s Memorandum (IDA/R2012-0024).
Executive Directors also approved the proposed procedure to process a US$5 million expansion
option for the Olkaria III geothermal sub-project.

       Executive Directors noted the project’s alignment with the Bank’s Country Partnership
Strategy for the Republic of Kenya and with the foundation, pillars and key instruments of the
World Bank Group Africa Strategy, in particular by strengthening the country competitiveness
and employment opportunities. Executive Directors also underscored the key role of the Project
in supporting the Government’s strategy to attract private sector investment into the energy
sector to spur economic growth and job creation. They commended the Government and the
Bank, working in coordination with IFC and MIGA, for supporting an efficient risk mitigation
package that helped Kenya attract private sector financing for urgently needed power generation,
given Kenya’s limited available fiscal space in the context of the global economic slowdown.
They encouraged the Bank to continue to expand Kenya’s energy generation options, including
development of lower-carbon and lower-cost alternatives, and further encouraged replication of
this project in other regions.

      Lastly, Executive Directors commended the team for working with the Government to
ensure that appropriate reform and governance measures had made the sector attractive for
investment. They reiterated the need for continued dialogue with the Government and
collaboration with other donors to continue in this direction, which is important for the
sustainability of Project outcomes.




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This summary is not an approved record.