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Mburu and Mwangi 9 Geothermal development in Kenya and AfricaIn 2000, Geothermal Development Associates undertook a feasibility study with an intention ofsigning a PPA for a 30 MW plant. However, the deal fell through. Given that Djibouti depends onimported fuel for all its generation, there is every good reason to proceeding with this project. ARGeois considering funding the services of a transaction adviser for this project.6.3 EritreaInitial exploration work by UNDP in 1973 with a followup detailed survey by USGS in 1996identified Alid as the most promising prospect in Eriteria for geothermal exploitation (Woldegiorgiset. al. 2002).Alid is located about 120 kilometers south of Massawa, Eritrea’s dominant port city and main thermalelectricity generating center. Detailed geological studies indicate that a relatively young, large,shallow, and still hot magmatic heat source is probably present beneath the volcanic center in thenorthern Danakil Depression of Eritrea. Fumaroles and hot springs are widely spread.Geothermometer predict subsurface temperature in excess of 250°C. The resource has yet to bedrilled.6.4 UgandaUganda is endowed with high hydropower potential along the river Nile with the current installedcapacity of 317MW. Unfortunately, hydropower development has met a lot of resistance from civilsociety due to its effects on environment. As a result of this and the growing demand of powerestimated at 7.4% per annum (Bahati and Tugume, 2005), Uganda is seriously considering thedevelopment of other alternative sources of energy.Although reconnaissance survey has been carried out on geothermal areas of Uganda since 1935 andlater during UNDP programme, no power generation has been achieved todate. UNDP project hasestimated the countries potential to be about 450MW. More recent studies have concentrated on threegeothermal systems of Buranga, Katwe and Kibiro. These prospects are located in the active volcanicbelt in the western Rift valley along the border of Uganda and Democratic Republic of Congo. TheAfrican Development Bank with the Uganda Alternate Energy Resource Agency (UAERA) conductedresearch at Katwe, Buranga and Kibiro. Also, the government of Iceland conducted a geophysicalstudy at Kibiro Geothermal prospect area and is planning to cover the Katwe and Buranga as well.Kibiro has been advertised for international bidding for drilling temperature gradient wells to assist inlocating deep exploratory wells.6.5 TanzaniaGeothermal exploration in Tanzania was carried out between 1976 and 1979 by SWECO, a Swedishconsulting group, in collaboration with Virkir-Orkint (Iceland), with the financial support of theSwedish International Development Authority (SIDA). Reconnaissance studies of surface explorationwere carried out in the north (near Arusha, Lake Natron, Lake Manyara and Maji Moto) and in thesouth (Mbeya region). At least fifteen (15) thermal areas with hot (T>40°C) spring activity have beenidentified. However, the geothermal work in all locations is at the surface exploration stage.Two potential target areas for geothermal exploration singled out so far are: (a) Arusha region near theKenyan border in the North; and (b) Mbeya region between Lake Rukwa and Lake Nyasa in thesouthwest. Another potential area (Luhoi) was prospected during 1998-2002 by First Energy Company(a local firm) by analyzing wells drilled for petroleum exploration. It conducted important projectdefinition and reconnaissance evaluation work. This area is located 160 km south of Dar es Salaam.