By Sheree Hanna
An $80 million loan is being made to a Ghanaian power company to help expand its gas-fired power plant in a bid to increase electricity production in the country and boost economic growth.
US-based International Finance Corporation (IFC) is providing the loan to the Takoradi International Company (TICO) for its Takoradi 2 power plant. TICO is a joint venture company between Abu Dhabi National Energy Company (TAQA) and Volta River Authority (VRA).
VRA is the main generator and supplier of electricity in Ghana while TAQA is the operator of the facility.
Frank Perez, Executive Officer and TAQA’s Head of Power and Water said: “We are delighted to have jointly developed this landmark project with our partner VRA and the Government of Ghana.
“This is the culmination of hard work by all parties to ensure that we deliver the best possible electric tariff for the Ghanaian consumer in an environmentally responsible way.
“We have played a vital role during the last 10 years in delivering a reliable source of electricity to the population with an excellent safety record, and this project will enable us to continue to do so for another 25 years.”
Yolande Duhem, IFC Director for West and Central Africa, said: “The expansion of Takoradi 2 demonstrates how the private sector can help increase supply and reduce the cost of power generation in West Africa.
“T2 is the first commercial project financial for an independent power project in Ghana and will serve as a landmark as the Government of Ghana continues to encourage private sector participation in power.”
+ MORE AFRICAN BUSINESS REVIEW
The investment will allow T2 to use waste heat recovery technology for the expansion, allowing the plant to generate 50 per cent more electricity with only marginal incremental fuel consumption and without increasing greenhouse emissions. It will also cut the costs of electricity generated at T2.
As well as the £800 million, IFC will also provide an additional $15 million loan to TICO on behalf of the Canada Climate Change Program, for which IFC is the implementing agency.
The OPEC Fund for International Development will be providing £22.5 million, and the balance of $330 million debt financing will be provided by a consortium of international finance institutions led by FMO.
IFC is a member of the World Bank Group and is the largest global development institution focused exclusively on the private sector.