Investment to develop Kpone Independent Power Project.
The Africa Finance Corporation (AFC) today signed an agreement with Ghanaian partner Cenpower Generation Company Limited (Cenpower), to join forces in developing the Kpone Independent Power Project – a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana.
Another partner is Infraco Limited, a special project development company established and funded by Private Infrastructure Development Group (PIDG), comprising the development agencies of the governments of the Netherlands, Sweden, Switzerland, Austria, and the United Kingdom as well as the World Bank. AFC, Cenpower and Infraco will contribute equity together with other strategic investors to fund the USD$450 million project. AFC is arranging debt finance, which will be provided by a consortium of private sector local and international commercial banks, development finance, institutional and export credit agencies.
The Kpone Independent Power Project forms part of the Least-cost Power Generation Expansion Plan for Ghana. Through it, Ghana is promoting increased use of indigenous resources for electricity supply, and private sector investment in the development of new production capacity. The landmark investment underscores AFC's mission to develop bankable power projects in order to address Africa's critical infrastructure gap. AFC's objective is to help ease the power deficit in Ghana, reduce the cost of electricity from self generation, both to individuals and industrial consumers alike, and more broadly to assist and support the Government of Ghana realize its vision to accelerate the country's economic development.
"As a pan-African financing institution, we are committed to helping Africa bridge the power infrastructure gap and address the commercial imperative necessary for the development of its industrial and infrastructure assets to drive economic growth," said Andrew Alli, Chief Executive Officer of AFC.
"We welcome AFC's involvement in the project," said Mr. Samuel N. Brew-Butler, Chairman of Cenpower. "This is a power plant that will make a significant improvement in power generation in Ghana when it comes on line, and we are enthused to work alongside our dedicated partners in furthering this initiative."
The 340MW combined cycle gas turbine power plant is uniquely placed, adjacent to the West African Gas Pipeline landing point, a planned 330kV transmission corridor and 161kV substation and located some 600 meters from the Atlantic ocean, enabling the use of sea water for direct cooling. The power plant will provide much needed generation capacity when it comes on-stream by 2013, and will be the largest privately owned power plant facility in Ghana.
About AFC
Africa Finance Corporation (AFC) is an African led financial institution with the mission to improve African economies by proactively creating, developing and financing infrastructure, industrial and financial assets. Among other projects in which it is involved, AFC is a lead investor in the $240 million African led submarine Main-One Fibre Optic Cable System, which will provide much needed telecommunications capacity in West Africa with a scheduled landing in Ghana in April, 2010. AFC is also the main African participant in a seven- year USD$ 750 million syndicated reserved base lending facility to develop the landmark Ghanaian Jubilee Oil Field - West Africa's largest offshore deepwater find in over a decade. Ghana's membership of the AFC is imminent and awaiting final ratification.
For more information, contact:
Richard Uku
Senior Vice President
& Head, Corporate Communication
Africa Finance Corporation 3a Osborne Road
Tel. + 234 1 279 9656
Email: Richard.uku@africafc.org
Theo Sackey Vice President, Power
Africa Finance Corporation
3a Osborne Road
Tel. + 234 1 279 9610
Email: theo.sackey@africafc.org
