Ketu power project seeks local investors

Consultants of the 2,000 Megawatt Ketu Power Project (KPP) have offered 300 million Euros as Local Content Participation (LCP) in the power project.

The LCP, which comes in the form of investments, goods and services, is available to people and organisations in the public and private sectors.

Mayor Agbleze, lead consultant to the project, at a recent meeting in Accra, said “half of the 30 percent equity has already been taken by foreign partners of the project and we have had to negotiate strongly to cede the other part to the Government of Ghana and all other investors.”

Outlining the financial structure of the project, the Promoters indicated that the 2 billion Euro project is made up of a 30 percent equity and 70 percent debt structure.

“The opportunity of the LCP is time bound and whatever is left of the equity would go back to the foreign participants who are knocking hard on our doors,” he noted.

The 2,000 MW Combined Cycle Power Plant comes in five modules fuelled by an on-shore 250mmscf/day LNG re-gasification train, using overhead rack vaporizers. Finite Earth Consult, Consultants for KPP, expressed optimism that the Government of Ghana would be willing to participate and positively assist KPP to resolve the power crisis.

“The Government of Ghana must vote confidently, boldly and visibly in the €300 Million ceded for the LCP by demonstrating the political will to leverage support for the development of the project and further embracing the ownership associated with the dominance of KPP on the National Grid for a long time to come when completed.”

Mr Agbleze said, “This would demonstrate Government’s participation and pragmatic faith in the KPP to the international investor community, signalling Ghana’s readiness to promote mega investments in sectors of the economy other than the extractive industries alone.”

“The success of KPP would depend on proven technology, efficient management, reliable service and the traditional Ghanaian hospitality and hard work rather than tariff margins,” he noted, adding that “the strength and commitment of the Power Purchase Agreement (PPA) will enable the investors meet their long-term debt obligations over the scheduled payback period.”