Ghana se­cures $650m power-up

CityPress - - Business -

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.

– Bloomberg

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