Taqa gets $330m funding for Africa plant expansion
Abu Dhabi, January 28, 2013
Abu Dhabi National Energy Company (Taqa) and its partner, Volta River Authority (VRA), the main generator and supplier of electricity in Ghana, have completed the $330 million financing for the expansion of its power plant in the West African nation.
The Takoradi 2 plant is Ghana's first independent power project (IPP) and currently represents approximately 15 per cent of Ghana’s installed capacity. It is also the first IPP in Ghana to utilise project financing, said a statement from Taqa.
The plant is owned by Takoradi International Company, a joint venture between Taqa (90 per cent) and VRA (10 per cent), the main generator and supplier of electricity in Ghana.
The expanded plant is scheduled for commissioning in 2015. Once completed, the Abu Dhabi firm will be the operator of the facility.
According to Taqa, the Takoradi 2 expansion project will convert the existing gas-fired plant into a combined cycle unit, increasing its output from 220 megawatts (MW) to approximately 330 MW without requiring additional fuel, .
This represents an addition of 50 per cent capacity without increasing carbon dioxide emissions.
The extra energy will be sold to VRA under the terms of a revised 25-year power purchase agreement, the statement added.
The plant was recently converted from primarily an oil-fired plant to one fuelled by natural gas as part of a considered effort within Ghana’s power generation industry towards cleaner-burning fuel.
The $330 million project financing is being provided by the International Finance Corporation (IFC), a member of the World Bank Group, and a consortium of international development finance institutions led by FMO, a development bank majority-owned by the Dutch government that supports sustainable private sector growth in emerging markets.
The consortium includes African Development Bank, Emerging Africa Infrastructure Fund, Deutsche Investitions-und Entwicklungsgesellschafte, ICF-Debt Pool and Proparco. The Opec Fund for International Development and Canada Climate Change Program are taking part alongside IFC.
Frank Perez, the executive officer and Taqa’s head of Power & Water said: “We are proud to have brought so many respected lenders together for this strategic energy project. This expansion will help Ghana’s growing population meet their energy needs and provide the power needed for economic growth.”
The engineering, procurement and construction contract worth $260 million was awarded to a consortium comprising Mitsui & Co (Japan) and Kepco(Korea) in 2011 and the construction began in 2012.-TradeArabia News Service