AFRICA TO HAVE LARGEST INDEPENDENT POWER PLANT BUILT IN GHANA

Takoradi-3 (T3) Thermal Power Plant at Aboadze is now completed and is due for commissioning later this year: a new Kpone Independent Power plant will be set up and begin streaming in 2017.

Africa is to have the largest independent power plant built in the Sub-Saharan region, Ghana.  Cenpower Generation Limited has already signed an agreement for construction of Kpone Independent Power Plant (KIPP) in the Tema industrial zone at a cost of US$900m to finance the project.

The Combined Cycle Gas Turbine (CCGT) power plant is projected to start stream in 2017, adding about 10% of Ghana’s total installed capacity and approximately 20% of the country’s available thermal generation capacity. It will be amongst Ghana’s most fuel-efficient thermal power stations in meeting Ghana’s growing electricity demand.

Oliver Andrews Executive Director and Chief Investment Officer of the African Finance Corporation (AFC) said that, Africa’s public and private sectors are coming together in innovative and sustainable partnership to create the bankable energy infrastructure projects in response to the continent’s economic growth.

A US$ 650 million debt tranche will be provided by a consortium of South African Commercial banks and international Development Finance Institutions (DFIs), with the rest of funds being a US$ 250m equity tranche. Rand Merchant Bank (‘RMB’) acted as the Global Lead Bank and Mandated Lead Arranger for the commercial banking tranche.

Nedbank and Standard Bank Mandated were also involved as Lead Arrangers. Nederlandse Financierings-Maatschappij voor Ontwikkelings Landen N.V. (FMO), the Dutch Development Bank, acted as the Mandated Arranger for the DFI tranche.

Sumitomo Corporation of Japan, African Infrastructure Investment Fund II and its co-investors (via an investment vehicle called Mercury Power) and FMO will be joining the equity consortium via equity raising as new investors, whilst InfraCo, the principal project co-developer since inception, is leaving the equity consortium. Cenpower has already signed a deal with the South Africa-based Group Five for procurement, construction and engineering/design of the new power plant.

Construction Review