AFC initiates $900m power project in Ghana
AFRICA Finance Corporation (AFC), on Friday, effected the ground-breaking of the $900 million Kpone Independent Power Project (Kpone IPP) in Ghana, implemented by the Cenpower Generation Company Limited.
AFC is the lead project developer, mandated lead arranger and largest equity investor in Kpone IPP, which reached financial close in December 2014.
The ceremony was attended by Ghanaian Vice President KwesiAmissah-Arthur, Minister of Power Dr. KwabenaDonkor, and Robert Dwamena, Managing Director of the Electricity Company of Ghana.
The principal parties to the Cenpower transaction were also in attendance, including AFC’s President and Chief Executive Officer, Andrew Alli, and Executive Director and Chief Investment Officer, Oliver Andrews.
Kpone IPP is a $900million project comprising a 350 megawatt (MW) combined cycle gas turbine power plant, a 161kV substation, liquid fuel (Light Crude Oil and Distillate) storage, delivery and supply infrastructure and working capital financing for fuel.
It will be the largest IPP in sub-Saharan Africa, and as a CCGT plant it will be amongst Ghana’s most fuel-efficient thermal power stations.
The project, located in the Tema Industrial Zone, near Accra will provide an additional 10 per cent of Ghana’s generation capacity, approximately 20 per cent of its available thermal generation and supply power to approximately one million households, when it comes on-stream in 2017,
Other shareholders in Cenpower include AIIM, Sumitomo Corporation and the Dutch development agency, FMO.
KponeIPP has already been awarded the prestigious Thomson Reuters “African Power Deal of the Year” award for 2014.
Commenting on the ground-breaking of Kpone IPP, Alli said: “We are delighted to have reached this stage with Kpone IPP, which represents a truly transformational investment for AFC and a unique infrastructure project for Africa. The project promises to play an important role in addressing Ghana’s future energy needs.”
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