Knowledge Note

The Thika Project represents the first time that an international commercial bank has provided long-term financing to a power project in Kenya on a limited recourse basis. Previous power projects have been financed by international development finance institutions. The project has successfully drawn upon the resources, expertise, and instruments from all three institutions of the World Bank Group (WBG), including IDA, IFC, and MIGA. The innovative project financing and credit structure helped the sponsor successfully raise the project debt while minimizing the government’s contingent liabilities associated with the government support that was needed to make the project bankable in Kenya. This SmartLesson addresses some of the challenges that were faced during project preparation and execution and the lessons learned by the one World Bank Group (WBG) team that worked to overcome them.

About the Presenters

Jason Lu

Elam Muchira

Teuta Kacaniku

Karan Capoor