Business News of Wednesday, 30 January 2013
Source: citi fm
The Volta River Authority (VRA) has signed a $330 million dollar deal with the Abu Dhabi National Energy Company (Taqa) to finance the expansion of the Takoradi 2 power plant in Ghana.
The expansion project will mean that the existing gas-fired plant can produce about an extra 100 megawatts of energy without requiring additional fuel.
The extra energy will be sold to VRA under the terms of a revised 25-year power purchase agreement. The plant was recently converted from primarily an oil-fired plant to one fueled 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.
The Takoradi 2 plant is Ghana's first independent power project (IPP) and currently represents approximately 15 per cent of Ghana’s installed capacity.
The engineering, procurement and construction contract with an approximate value of $260 million was awarded to a consortium comprising Mitsui & Co (Japan) and KEPCO E&C (Korea) in 2011.
Construction started in 2012 following cabinet and parliamentary approvals by the Government of Ghana, and the signature of financing agreements in July 2012. The expanded plant is scheduled for commissioning in 2015.