Buchangu dam hydro bankable feasibility studies
Getting Buchangu and Sirwa hydropower schemes finance-ready
Zutari was appointed by KFIR Partners to upgrade the feasibility studies for two hydropower schemes in western Kenya to bankable level. The appointment also included the necessary discussions with the lender and the lender’s advisor, as the project was developed under a project finance deal funded by a commercial lender.
Zutari reviewed previous feasibility studies and designs, conducted a full hydrological study, including rain-runoff modelling, and carried out sedimentation and flood analyses. Zutari also planned and provided part time supervision and interpretation of geotechnical investigations for both sites. A technical evaluation of the existing transmission network in the project area was carried out to determine the suitability of network integration and to propose power evacuation plans.
A full economic/financial analysis was carried out using tariffs based on the Kenyan Ministry of Energy Feed-in-Tariff Policy. These studies ensured that Zutari optimised the plans and refined the designs and layouts using surge analyses and computational fluid dynamics (CFD) modelling. The scope also included a Risk Analysis as well as a gap analysis of the previously compiled Environmental and Social Impacts Assessment and assisting the Client in negotiations with Kenya Power over the power purchase agreement.
Zutari was appointed by KFIR Partners to upgrade the feasibility studies for two hydropower schemes in western Kenya to bankable level
Zutari’s solutions led to an improved hydrological assessment of the site, leading to a refined turbine selection and resulted in a cheaper construction
The Project was completed in December 2019. Zutari’s solutions led to an improved hydrological assessment of the sites, leading to refined turbine selections (number of, alignment and sizing) which resulted in construction cost savings as well as a design that was compliant to International Finance Corporation (IFC) performance standards. Zutari also proposed a refined method for determining the deemed energy to be included in the power purchase agreement as well as provided various other inputs into the power purchase agreement.
The 5 MW Buchangu site is located on the Nzoia River and the 15 MW Sirwa site is located on the Yala River, both in south western Kenya.
*The Aurecon Africa business has been officially renamed Zutari as at 21 July 2020. Zutari acquired Aurecon Middle East on 20 November 2020.
