TAQA secures financing for Ghana's Takoradi power plant expansion
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Mon July 16, 2012 10:06 am

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

The expansion of the Takoradi 2 plant follows the announcement on June 20, 2012 that TAQA completed financing arrangements for US$1.4 billion equivalent of 16-year, multi-currency non-recourse project financing for the 700 MW expansion of the TAQA-operated Jorf Lasfar 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 plant increasing its 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 industry towards 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.”

Kweku Awotwi, 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), Agence Française 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 million has 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 Ghanaian Minister for Energy H.E. Dr Joe Oteng-Adjei to its Abu Dhabi headquarters last week during an official state visit to the United Arab Emirates. The Minister’s visit included an inspection of the Fujairah 2 power 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.


About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

 

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