Baringo-Silali Geothermal Resources Dev elopment Project, Kenya


Oduor Samuel and Kiptanui Shammah
Geothermal Development Company


ABSTRACT

This study explores the potential social- economic and employment impacts of developing 300MW of geothermal power from the Baringo – Silali prospects, one of Geothermal Development Company’s (GDC) milestone projects and key project for realizing 5,000MWe from geothermal resources that the Government of Kenya target by 2030. Development and operation of the Baringo – Silali project located in a remote setting is projected to generate significant and lasting socio – economic, political and environmental impact, direct and indirect externalities, and contribute positively towards improving the livelihoods of both the local communities and national economies. It is expected that 85 percent of the impacts accruing from operation will benefit the surrounding local communities. The results of this study show that nationally the project is expected to mobilize in excess of $735 million towards power plant development, help avoid approximately 798, 912 tons of CO2 per annum translating to $12,857,143 in carbon credit earnings and contribute in reducing geothermal tariff by 13%. The project will also help generate 1,440 skilled and unskilled jobs to the community along the project area and in turn creating approximate cumulative income United States dollars 1,481,032.9. Through the multiplier effect, the project will generate economic activity worth United States dollars 3.7 million through spending and direct, indirect and induced job impact of 3600. The project will also promote agri-business through direct uses and create employment especially along the value chains. The positive socio-economic and employment impacts of the project outweigh the negative impacts and therefore the project is expected go a long way in improving the country’s energy needs, contribute positively towards improving the livelihoods of the local community and towards attainment of vision 2030. GDC should focus its efforts on mitigating against the negative impacts.
Keywords: Geothermal, Externalities, socio – economic, political, environmental, forward and backward linkages, multiplier effect


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