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AFC to Support Power Generation in Ghana

Investment to develop Kpone Independent Power Project

The Africa Finance Corporation (AFC) today signed an agreement with Ghanaian partner Cenpower Generation Company Limited (Cenpower), to join forces in developing the Kpone Independent Power Project – a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana.

Another partner is Infraco Limited, a special project development company established and funded by Private Infrastructure Development Group (PIDG), comprising the development agencies of the governments of the Netherlands, Sweden, Switzerland, Austria, and the United Kingdom as well as the World Bank.

AFC, Cenpower and Infraco will contribute equity together with other strategic investors to fund the USD$450 million project. AFC is arranging debt finance, which will be provided by a consortium of private sector local and international commercial banks, development finance, institutional and export credit agencies.

The Kpone Independent Power Project forms part of the Least-cost Power Generation Expansion Plan for Ghana. Through it, Ghana is promoting increased use of indigenous resources for electricity supply, and private sector investment in the development of new production capacity. The landmark investment underscores AFC’s mission to develop bankable power projects in order to address Africa’s critical infrastructure gap. AFC’s objective is to help ease the power deficit in Ghana, reduce the cost of electricity from self generation, both to individuals and industrial consumers alike, and more broadly to assist and support the Government of Ghana realize its vision to accelerate the country’s economic development.

“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,” said Andrew Alli, Chief Executive Officer of AFC.

“We welcome AFC’s involvement in the project,” said Mr. Samuel N. Brew-Butler, Chairman of Cenpower. “This is a power plant that will make a significant improvement in power generation in Ghana when it comes on line, and we are enthused to work alongside our dedicated partners in furthering this initiative.”

The 340MW combined cycle gas turbine power plant is uniquely placed, adjacent to the West African Gas Pipeline landing point, a planned 330kV transmission corridor and 161kV substation and located some 600 meters from the Atlantic ocean, enabling the use of sea water for direct cooling. The power plant will provide much needed generation capacity when it comes on-stream by 2013, and will be the largest privately owned power plant facility in Ghana.