Parliamentary approval to expand Takoradi2 power plant from 220 MW to 330 MW
USD 355 million of project financing provided by IFC and international development institutions
Mitsui & Co (Japan) and KEPCO (Korea) to start construction this month
Ghanaian Energy Minister Dr Joe Oteng-Adjei visits TAQA headquarters in Abu Dhabi

Abu Dhabi National Energy Company PJSC (“TAQA”) today announced securing the requisite parliamentary approval and signing financing arrangements for the 110 MW expansion of thegas-fired Takoradi 2 (T2) power plant in Ghana.

The expansion of the Takoradi 2 plant follows the announcement on June 20, 2012 that TAQAcompleted financing arrangements for USD 1.4 billion equivalent of 16-year, multi-currency non-recourse project financing for the 700 MW expansion of the TAQA-operatedJorfLasfar power complex in Morocco, the largest coal-fired power complex in the MENA region.

The TAQA-operated T2 power plant currently represents 15% of Ghana’s installed power production capacity. The expansion project will convert the existing plant to operate as a combined cycle power plantincreasingits output from 220 MW to approximately 330 MW without requiring additional fuel, therefore adding 50% more capacity without increasing carbon dioxide (CO2) emissions.The additional energy will be sold via an existing off-take agreement with Volta River Authority (“VRA”), under the terms of a revised 25-year power purchase agreement effective from commercial operations date (COD).The recent conversion of the plant to natural gas from oil as the primary fuel was also part of a considered effort within Ghana’s power generation industrytowards cleaner fuel, thereby reducing CO2 emissions.

The T2 power plant is owned by Takoradi International Company LLC (TICO), a joint venture between TAQA (90%) and VRA (10%), the main generator and supplier of electricity in Ghana. TAQA is the operator of the facility through its wholly owned subsidiary TAQA Generation International Operating Company LLC.

Frank Perez, Executive Officer and TAQA’s Head of Power & Water said:“We are delighted to have jointly developed this landmark project with our partner VRA and the Government of Ghana. This is the culmination of hard work by all parties to ensure that we deliver the best possible deal for the Ghanaian consumer in an environmentally responsible way. We have played a vital role during the last ten years in delivering a reliable source of electricity to the population with an excellent safety record, and this project will enable us to continue to do so for another 25 years.”

KwekuAwotwi, CEO of VRA, said: “We welcome the conclusion of the negotiations for this important infrastructure project for VRA and the people of Ghana and look forward to continue working in partnership with TAQA. The expansion is expected to save Ghana USD 30 million a year in fuel costs and will help ensure that the power generation capacity develops at a pace to meet Ghana’s sustainable growth ambitions.”

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, the majority Dutch Government owned development bank supporting sustainable private sector growth in developing and emerging markets. The consortium of international development finance institutions include the African Development Bank (AfDB), AgenceFrançaise de Développement (AFD), and Deutsche Investitions- und Entwicklungsgesellschaft (DEG). The project financing arrangements represent a total of USD 355 million.

The expansion is expected to be commissioned in 2015. The EPC contract with an approximate value of USD 260 millionhas been awarded to Mitsui & Co(Japan)and KEPCO (Korea)in 2011. Construction will start later this month (July 2012).

In a further sign of the growing co-operation with the Ghanaian Government, TAQA was delighted to welcome the GhanaianMinister for Energy H.E. Dr Joe Oteng-Adjei to its Abu Dhabi headquarterslast week during an official state visit to the United Arab Emirates. The Minister’s visit included an inspection of the Fujairah2power and water plant in the United Arab Emirates, TAQA’s flagship facility which generates 2,000 MW of electricity and 130 MIGD of desalinated water.

We accept Guest Posts

Download the Dubai City Guide iPhone mobile app

DubaiCityGuide.com is owned and managed by Cyber Gear