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AFC announces ground-breaking of US$900 million landmark power infrastructure project in Ghana

Tema, 29 January, 2015: Africa Finance Corporation (AFC) is pleased to announce the ground-breaking of the USD$900 million Kpone Independent Power Project (Kpone IPP) in Ghana, implemented by the Cenpower Generation Company Limited. AFC is the lead project developer, mandated lead arranger and largest equity investor in Kpone IPP, which reached financial close in December 2014.

The ceremony today will be attended by Ghanaian Vice President Kwesi Amissah-Arthur, Minister of Power Dr. Kwabena Donkor, and Robert Dwamena, Managing Director of the Electricity Company of Ghana. The principal parties to the Cenpower transaction will also be in attendance, including AFC’s President & Chief Executive Officer, Mr. Andrew Alli, and Executive Director & Chief Investment Officer, Oliver Andrews.

Kpone IPP is a US$900 million project comprising a 350 megawatt (MW) combined cycle gas turbine power plant, a 161kV substation, liquid fuel (Light Crude Oil and Distillate) storage, delivery and supply infrastructure and Working Capital Financing for fuel. It will be the largest IPP in sub-Saharan Africa, and as a CCGT plant it will be amongst Ghana’s most fuel-efficient thermal power stations. The project will be located in the Tema Industrial Zone, near Accra and, when it comes on-stream in 2017, will provide an additional 10% of Ghana’s generation capacity, approximately 20% of its available thermal generation, and supply power to approximately 1 million households.

Other shareholders in Cenpower include: AIIM, Sumitomo Corporation and the Dutch development agency, FMO. Kpone IPP has already been awarded the prestigious Thomson Reuters “African Power Deal of the Year” award for 2014.
Commenting on the ground-breaking of Kpone IPP, Andrew Alli, President & Chief Executive Officer of the Africa Finance Corporation, said:
“We are delighted to have reached this stage with Kpone IPP, which represents a truly transformational investment for AFC and a unique infrastructure project for Africa. The project promises to play an important role in addressing Ghana’s future energy needs.”
Oliver Andrews, Executive Director & Chief Investment Officer of the Africa Finance Corporation, said: 
“At AFC we are very proud to take a leading role in this landmark project. Once complete, Kpone IPP will become the largest power plant in Ghana, and will account for approximately 10% of the country’s installed capacity. We are proud to play a part in continuing to bridge Africa’s infrastructure divide.”

Notes to Editors

About AFC -

 AFC is an African-led multilateral development finance institution with a mission to help address Africa’s infrastructure development needs while seeking a competitive return on capital for its shareholders. Since beginning operations in 2007, AFC has created the building blocks with which to achieve this objective. It has raised USD1.26 billion in fully paid-in equity capital and its foreign currency debt rating is valued by Moody’s Investors Service at A3 (long term) and P2 (short term), making it one of the highest graded finance institutions on the continent.  

The corporation is driven by a diverse team of experienced professionals from investment banking, engineering and other backgrounds, who devote their expertise to AFC’s wide spectrum of projects. The corporation is the lead investor in the award winning Cabeolica project, a USD90 million, 26MW landmark renewable energy wind power project in Cape Verde, and is also the Technical Adviser to the Central Bank of Nigeria (CBN) on the CBN’s USD2.0 billion Power and Aviation Intervention Fund (PAIF).

About Cenpower

Cenpower Generation Company Limited (‘Cenpower’) is a special purpose vehicle that is developing a 350MW, light crude oil and gas fired, combined cycle power plant in the municipality of Kpone within the Tema industrial zone, near Accra, Ghana (‘Kpone IPP’). Kpone IPP is one of the largest infrastructure projects currently under development in West Africa. A well-developed project with a very robust commercial structure, Kpone enjoys the strong support of the Ghanaian Government.