Abu Dhabi National Energy Company PJSC (TAQA) and its partner, Volta River Authority (VRA), have completed the US$ 330 million financing for the expansion of the Takoradi 2 power plant in Ghana.
The expansion project will convert the existing gas-fired plant into a combined cycle unit, increasing its output from 220 megawatts (MW) to approximately 330 MW without requiring additional fuel.
This was contained in a press statement copied to the Ghana News Agency on Sunday.
It said the extra energy would be sold to VRA under the terms of a revised 25-year power purchase agreement.
It said the plant was recently converted from primarily an oil-fired plant to one fuelled by natural gas as part of a considered effort within Ghana’s power generation industry towards cleaner-burning fuel.
"The US$ 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 led by FMO, a development bank majority-owned by the Dutch government that supports sustainable private sector growth in emerging markets," it said.
The statement said the lenders participating in the consortium include the African Development Bank, Deutsche Investitions-und Entwicklungsgesellschafte, Emerging Africa Infrastructure Fund, ICF-Debt Pool and Proparco.
It said the Organization of Petroleum Exporting Countries (OPEC) Fund for International Development and the Canada Climate Change Program are participating alongside International Finance Company.
"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,” it quoted Frank Perez, Executive Officer and TAQA's Head of Power & Water.
The statement said the Takoradi 2 plant is Ghana's first Independent Power Project (IPP) and currently represents approximately 15% of Ghana's installed capacity.
It said the Takoradi 2 plant is also the first IPP in Ghana to utilise project financing and it is owned by Takoradi International Company, a joint venture between TAQA (90%) and VRA (10%), the main generator and supplier of electricity in Ghana; with TAQA as the operator of the facility.
It said the engineering, procurement and construction contract with an approximate value of US$ 260 million was awarded to a consortium comprising Mitsui & Co (Japan) and KEPCO E&C (Korea) in 2011.
It said construction started in 2012 following cabinet and parliamentary approvals by the Government of Ghana, and the signature of financing agreements in July 2012.
It said the expanded plant is scheduled for commissioning in 2015.
Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).
TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.