The Baringo-Silali Block has an estimated potential of 3,000MW. GDC is developing the resource in phases. Phase I targets to generate 2000MW of electricity. This first phase is funded by the Government of Kenya and KfW.
The Government of Kenya (GoK) is funding the construction of access roads and community engagement while KfW has given GDC a concessional loan of Euros 80 Million or approximately. Ksh8 billion for the drilling of 15-20 wells, several consultancies and a water pipeline to supply water for drilling, and has given (for geothermal development in the Baringo-Silali block.
GDC has already done a seventy kilometer access road to open up the area for drilling. GDC has also contracted Hong Kong Off-Shore Oil Services Limited (HOOSL) to drill 15-20 geothermal wells under Phase I
Section of completed access road to Korosi
Section of completed access road to Paka
Drill Pad No.2 in Progress
Paka Drill Pad No.2 in Progress
Hong Kong Off-Shore Oil Services Limited (HOOSL) and GDC have signed a contract for the drilling of 15-20 wells in the Baringo-Silali Block. The signing took place in a brief ceremony held on Wednesday April 6, 2016 at the Kawi GDC Boardroom, attended by the Ag. Managing Director& CEO Paul Ngugi and a delegation from the contractor. “This is a big day for us; it is a pleasure to have signed this contract after a long negotiation period” said a representative from the contractor. The Ag. MD & CEO, Paul Ngugi noted that the signing of the drilling contract opens a door for a very important partnership.
Drilling will commence once the water pipeline is completed. At present, infrastructural work is ongoing in the area. The drilling of the 15-20 wells is financed by KfW, a German government-owned development bank. KfW has given (Euros 80 Million or approximately. Ksh8 billion for geothermal development in the Baringo-Silali block. GDC is currently working towards addressing a few outstanding CPs (conditions precedent) to allow disbursement of funds from KfW.