KenGen Risks Losing Olkaria Wells Over 18-Year Licence Blunder Kenya Electricity Generating Company (KenGen) faces a serious legal and operational risk at Olkaria after an error in the coordinates of its geothermal licence left part of the company’s wells, steam infrastructure and other assets outside its legally recognised area. The licensing mistake, made nearly two decades ago, remains unresolved despite the Ministry of Energy and Petroleum acknowledging the problem in 2017. The dispute has raised questions about the security of KenGen’s investments, the government’s management of geothermal resources and the potential consequences for Kenya’s electricity supply. Olkaria is the country’s most important geothermal centre and accounts for the overwhelming majority of Kenya’s installed geothermal generation capacity. Licence Error Exposes Strategic Assets The problem dates back to September 19, 2008, when the Ministry of Energy and Petroleum issued KenGen a licence covering ...
Grenada’s Geothermal Slimhole Procurement Signals Project Momentum
Grenada has moved another step forward in its geothermal drilling program with a new invitation to bid for civil infrastructure and water supply equipment for two geothermal slimhole wells, a procurement package that points to concrete field preparation rather than just planning on paper . The notice breaks the work into three lots and covers access roads, drill pad civil works, water supply infrastructure, and power equipment needed to support drilling operations .
Project Context
The procurement is being issued by Grenada’s Ministry of Climate Resilience, the Environment and Renewable Energy through its Project Management Unit, while the Ministry of Infrastructure serves as the executing agency . The works are tied to the Government of Grenada’s geothermal drilling project and are being financed in part by the Caribbean Development Bank, according to the notice [1]. That funding link matters because it shows the project is advancing within a formal multilateral financing structure, which usually brings tighter procurement rules and clearer delivery milestones.
For geothermal development, civil works are not a side issue; they are one of the enabling layers that determine whether drilling can proceed safely, efficiently, and on schedule. Access roads, water intake systems, pipelines, and pad preparation all shape rig mobility, water availability, and site readiness before a single well is drilled. In that sense, this tender is a practical marker of project maturity rather than a generic administrative notice .
What The Tender Covers
The invitation to bid is divided into three lots, giving contractors the option to bid on separate components rather than the full package as one bundle . Lot 1 covers access roads, water supply infrastructure, and drill pad civil works for Site C, while Lot 2 covers the same scope for Site F . Lot 3 covers diesel generators and submersible electric pumps, which suggests the project needs independent power and pumping capability to support water handling and site operations .
The works described are broad enough to include construction of water intake infrastructure, water supply pipelines, drill pad civil infrastructure, access road improvements, associated electrical and mechanical systems, testing and commissioning, and related ancillary works [1]. That scope indicates the tender is not limited to a single construction task but to an integrated package of site-enabling infrastructure. For geothermal developers, that kind of integration is important because drilling logistics often fail when civil, water, and power systems are not coordinated well enough .
Why Slimhole Wells Matter
Slimhole wells are commonly used as a lower-cost way to test geothermal potential before committing to larger production wells, which makes them especially useful in frontier or early-stage geothermal markets. In practical terms, they help developers confirm reservoir temperatures, permeability, and fluid characteristics while controlling up-front risk. Grenada’s decision to procure support works for two slimhole wells suggests the country is still building the evidence base needed to advance toward a commercial geothermal field.
This is particularly significant for an island state where energy security, fuel import exposure, and electricity costs are closely watched policy issues. Geothermal could offer firm renewable capacity if drilling confirms a viable resource, but the project must clear each technical and logistical step first. Civil infrastructure procurement is one of those steps because drilling campaigns require reliable water, manageable site access, and stable operating conditions .
Financing And Governance
The notice states that the Government of Grenada has received financing from the Caribbean Development Bank and will use part of the proceeds for eligible payments under the contract [1]. It also notes that payments by the CDB will occur only at the request of the Government of Grenada and subject to approval by the bank, which is standard language in development-financed procurement . That structure helps ensure compliance with the loan agreement and strengthens oversight over how project funds are used .
The notice also includes the standard restriction that funds cannot be used for payments or imports prohibited under United Nations Security Council decisions, a clause commonly found in multilaterally financed contracts.While that language is procedural, it signals that the project is being managed under formal international financing discipline rather than ad hoc public spending. For contractors, that usually means clearer documentation requirements, stricter eligibility rules, and a more structured evaluation process .
Market Implications
For the geothermal supply chain, this tender is relevant beyond Grenada because it shows how small-island geothermal projects move from policy ambition into procurement reality. Civil works packages like these often create opportunities for road builders, civil contractors, electrical-mechanical suppliers, and pump or generator vendors. In emerging geothermal markets, these early packages can be just as important as drilling contracts because they establish the physical backbone that drilling depends on .
The split into multiple lots may also broaden participation by allowing firms with specific capabilities to bid on narrower scopes. That can help a project attract more competition and reduce dependence on a single all-in contractor, especially where local capacity is being developed. For regional contractors in the Caribbean, this kind of procurement can be a gateway into geothermal infrastructure work if they have relevant civil and mechanical experience .
What Bidders Need To Notice
Bidders should pay close attention to the lot structure, because each lot appears to cover a distinct geographic or equipment package. Site C and Site F may present different access or logistical conditions, so pricing and construction methods may vary materially between them. Lot 3 is also separate from the civil packages, which may appeal to suppliers of generators, pumps, and related electrical systems rather than general contractors.
The notice says the Ministry of Climate Resilience, the Environment and Renewable Energy Project Management Unit is inviting electronic bids from eligible and qualified bidders [1]. That means the procurement is likely being run through a formal online submission process, so compliance with bid format, eligibility documentation, and deadline requirements will be essential. In development-financed tenders, even technically strong bids can be disqualified if they miss submission rules or omit required forms .
Grenada’s Energy Strategy
Grenada has been positioning geothermal as part of its broader renewable energy transition, and this procurement suggests the country is continuing to push the project forward in measurable stages. Slimhole drilling is often an early proof point in geothermal development, especially in volcanic island settings where resource confirmation is critical before scaling up. If successful, the project could support long-term energy diversification and reduce exposure to imported fossil fuels.
The tender also reflects the practical sequencing of geothermal development: first secure financing, then prepare sites, then drill, then evaluate the resource, and only later consider expansion. That sequencing can look slow from the outside, but it is the normal discipline of geothermal project development. In Grenada’s case, the current tender shows that the project has moved into a more tangible phase where infrastructure on the ground is being organized for drilling activity .
What Happens Next
The most immediate next step is the bid process itself, which will determine which contractors are selected for each lot. After that, the chosen firms would typically move into mobilization, site preparation, and the installation or upgrading of access roads, water systems, pads, and support equipment. Once that work is complete, the project will be better positioned for drilling operations at the slimhole sites .
The CDB procurement notice lists the opportunity as a works contract for Grenada, with a deadline of Nov. 6, 2026 at 12:00 PM .
That gives interested contractors a defined window to prepare compliant submissions and price the work according to the site conditions and technical requirements. For observers of the geothermal sector, it is another sign that Grenada’s project is progressing through the necessary stages toward subsurface testing .
Source : Government of Granada
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