TAQA finalises $330m financing for Ghana plantby Adam Lane on Jan 27, 2013
Abu Dhabi National Energy Company (TAQA), together with its partner, Volta River Authority (VRA), has reported the completion of US $330 million financing for the expansion of Ghana’s Takoradi 2 power facility.
The project involves the pair converting the gas-fired plant to a combined cycle unit, boosting output from 220 MW to around 330 MW without necessitating additional fuel consumption. The plant has previously been converted from a primarily oil-fired plant to natural gas, as Ghana looks to move its power industry towards cleaner fuels.
The extra power produced will be sold to VRA under a 25-year power purchase agreement.
Financing is being provided by the International Finance Corporation, part of the World Bank Group, together with a consortium of international development finance institutions led by FMO. Lenders include the African Development Bank, Emerging Africa Infrastructure Fund and Proparco.
“We are proud to have brought so many respected lenders together for this strategic energy project. This expansion will help Ghana’s growing population meet their energy needs and provide the power needed for economic growth,” said TAQA executive officer and head of power and water, Frank Perez.
The Takoradi 2 facility is the first IPP in Ghana, and currently produces around 15% of the country’s total power. The expansion is scheduled for completion in 2015.