27 November 2012

Ghana: Gov't, Cenpower Sign Agreement

Cenpower Generation Company Limited has executed a Government Consent and Support Agreement with the Government of Ghana for the development of a 340MW Independent Power project at Kpone, near Tema.

The document was executed on behalf of Government by Dr Joe Oteng Adjei, Minister of Energy, while Mr. S.N. Brew -Butler, Chairman of Cenpower Generation and Oliver Andrews, Director of African Finance Company (AFC), executed it on behalf of Cenpower Generation.

At the same function held at the Ministry of Energy, Cenpower Generation, the ceremony marked a significant milestone in a journey which began in 1999, when a Ghanaian Independent Power Producer, Cenpower, began initial preparatory studies on the power plant at Kpone.

The statement noted that after over 12 years of project development work, the way was now clear for construction work on the power plant to commence next year and that the 340 MW power plant was projected to be on-line in 2015.

"The combined Cycle Gas Turbine technology for the plant", according to the statement, "will use GE Frame 9E gas turbines operating on both natural gas and liquid fuel, thus ensuring high/ continuous power availability".

The 340MW Power Plant will greatly add on to Ghana's power generation capacity and further enhance national development. It is owned by Cenpower Generation Company Limited (Ghana), established in 2003.

Shareholders of the company are Africa Finance Company (AFC), an African-led multilateral financial institution, which holds 46% shares; InfraCo Limited, an infrastructure development company owned through the PIDG Trust by the Governments of UK, Netherlands, Switzerland and Austria which holds 24% shares; and Cenpower Holding Company Limited (CHL), a fully owned Ghanaian power developer which holds 30% shares.

The statement noted that 76% ownership by AFC and CHL makes the Kpone plant one of the largest African Private sector owned projects in the power sector.

The US$600M project's Mandated Lead Arranger of the debt funding is Rand Merchant Bank, a division of FirstRand Bank Limited, Africa's largest financial services firm and a leading investor in infrastructure projects across Africa.

The facility is supported by the Export Credit Insurance Company of South Africa (ECIC) under the department of trade and industry.

The statement noted that the final lap towards construction of the power plant was made possible with the signing of a 20-year power purchase Agreement between Cenpower Generation and the Electricity Company of Ghana as well as the grant of Cabinet and Parliamentary Approvals for the project.

Cenpower Generation's Kpone Project implementation guarantees technology transfer from foreign technical experts and ensures domestic participation and therefore Local Content which will result in job creation for many Ghanaians.

The company expressed gratitude to all those institutions, including Parliament and Cabinet as well as individuals who had over the years assisted in driving forward the highly needed Kpone Independent Power Generation Project.

CAPTIO: Dr. Joe Oteng Adjei , Minister of Energy, executing the Government Consent and Support Agreement for the 340MW Kpone Power Plant. Signing for the project owner's are Sam Nana Brew-Butler, Chairman of Cenpower Generation (middle, and Oliver Andrews, Director of AFC

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