The Africa Finance Corporation (AFC), a Pan-African financial institution, has acquired a 46 per cent controlling stake in a $450 million power plant being developed in Tema by Cenpower Generation Company, a Ghanaian-owned entity.
An agreement to that effect was signed on Monday with Cenpower Holding Company Limited and Infraco Limited, the other shareholders.
AFC, Infraco and Cenpower will contribute equity together with other strategic investors to fund the project.
AFC will also arrange debt finance to be provided by a consortium of private sector local and international commercial banks, development finance, institutions and export credit agencies.
The Kpone Independent Power Project forms part of the least-cost power generation expansion plan for Ghana through which the country is promoting increased use of indigenous resources for electricity supply and private sector investment in the development of new generation capacity.
Government expects to increase power supply from the current 2,000 to 5,000 Mega watts by 2015.
Mr Andrew Alli, Chief Executive Officer of AFC, said the landmark investment underscored the corporation's mission to develop bankable power projects in order to address Africa's critical infrastructure gap.
"As a pan-African financing institution, we are committed to helping Africa bridge the power infrastructure gap and address the commercial imperative necessary for the development of its industrial and infrastructure assets to drive economic growth," he said.
Mr Alli said AFC's objective is to help ease the power deficit in Ghana, reduce the cost of electricity from self generation, to individual and industrial consumers alike and more broadly assist and support government to realise its vision of accelerated economic development.
Mr Samuel Brew-Butler, Chairman of Cenpower said the group welcomed AFC's involvement in the project.
"This is a power plant that will make a significant improvement in power generation in Ghana when it comes online and we are enthused to work alongside our dedicated partners in furthering this initiative," he said.
Mr Keith Palmer, Chairman of Infraco said the signing of the agreement was an important contribution by Infraco, to accelerate the urgently needed power supply to Ghana.
"In particular we are pleased it will provide competitively priced electricity for the lowest income consumers in the country," he said.
The 340 Mega Watts combined cycle gas turbine power plant, developed by Infraco and Cenpower Holdings, is expected to come on stream in 2011.