• Monday, May 20, 2024
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AFC, others finance landmark $900m Kpone power project

The Africa Finance Corporation (AFC) has executed the financing of the Cenpower Generation Company Limited (Cenpower) and Kpone Independent Power Project US$900 million project.

The 350 megawatt(MW) combined cycle gas turbine power plant,  161kV substation located in Tema, will provide 10percent of Ghana’s generation capacity when it comes on-stream in 2017. Twenty percent of its available thermal generation, will be supplied to approximately 1million households.

In recognising the transformative impact of the project, Andrew Alli, president and chief executive officer of the Africa Finance Corporation, remarked: “AFC’s long term vision is to help address Africa’s infrastructure deficit and ensure sustainable economic growth for the continent. The full growth of the Ghanaian economy cannot be realised without an efficient and functioning energy sector. Power is one of AFC’s high priority sectors for investment, and arguably Africa’s most significant need.

Also emphasising the success of the event, Oliver Andrews, executive director, chief investment officer and Head of the Cenpower Project Development Team, said: “This is another key milestone for Cenpower as we achieve financial close. As co-developer and lead investor in Cenpower, through AFC Equity Investments Limited, we are delighted to bring to the table both long-term infrastructure financing and project development expertise in a project of many firsts, ably demonstrating Africa’s ability to lead on the path to Africa’s economic transformation.”

AFC the mandated lead arranger as well as the single largest equity investor in the project. The project was initiated in 2003, by Cenpower Holdings Limited, representing a group of Ghanaian entrepreneurs. Following the exit of InfraCo, the equity investors in the project will together provide equity funding of circa $250-million.

Samuel Nana Brew-Butler, Chairman of Cenpower, expressed his appreciation to the team for the swift execution of the project: “I should like take this opportunity to thank the team at InfraCo for sharing our vision for Kpone and for their contribution in bringing the project to this stage. Recognizing the crucial role that Cenpower will play in meeting Ghana’s future electricity needs, we and our equity investors are all now galvanized to bring Kpone into production on time and on budget.”

Kpone IPP has been in development for over ten years and registers a number of significant firsts: It is the first green-field independent power project in Ghana; it is the largest independent power project in Sub-Saharan Africa in the last 10 years; it is the largest private power plant financed in Sub- Saharan Africa; and it is Sumitomo Corporation of Japan’s first thermal IPP investment in Africa. The plant will be constructed by Group Five of South Africa.