Ghana secures $650m power-up
A Ghanaian independent power project will get $650 million (R7.3 billion) in financing after the state-run Electricity Company of Ghana agreed to buy electricity from the plant for the next 20 years.
Rand Merchant Bank, Nedbank Group and Standard Bank Group would provide $426 million of the debt, Cenpower Generation said. The other $224 million is coming from a group of development finance institutions, including the Development Bank of Southern Africa. Equity investors like Sumitomo have put $250 million towards the plant.
Group Five will start to build the 350 megawatt Kpone Power Plant, 24km east of the Ghanaian capital Accra, this year and finish it in 2017.
The Electricity Company of Ghana agreed to buy Kpone’s electricity for 20 years, with the pricing linked to the dollar to guard investors against a decline in the cedi, which has depreciated 27% against the dollar this year.
Ghana’s finance ministry and central bank have said regular power outages were slowing economic growth in the west African country, the world’s second-largest producer of cocoa.