Sinomach Signs Deal with General Electric to Develop Clean Energy Market in Africa
The China National Machinery Industry Corp. is a State owned enterprise also known as Sinomach signed a memorandum of understanding with US based giant General Electric Co. to assist further in the development of the Sub-Saharan Africa’s clean energy market. They company have already identified a 102 megawatt wind power farm in Kipeto a city just 50 kilometers south of the Kenyan capital Nairobi which is a long term pilot program for future cooperation.
Both sides said that they will assist each other in obtaining a third party, long term financing or to provide the capital themselves to be used in the project development. The Kipeto farm is run as part of the Power Africa campaign, a US government led initiative that brings together public and private organizations from different parts of the world to work in partnership in raising power supply levels across the continent.
Sinomach is involved in Machinery equipment research and development and project contracting and they will be the main contractor for the joint project. As of for General Electric provides the generators, technological support, machine parts and training. GE will also provide 60 wind driven generators. The total investment for the Kiepto project is set at $210 million and much of the investment comes from overseas private investment corp. a US public agency that mobilizes development capital for private firms.
The collaboration with GE in African power infrastructure construction and other emerging market shows a new a kind of cooperation between Chinese and US companies.