By Michael Eboh
Africa Finance Cor poration (AFC) has entered into as strategic partnership with Cenpower Generation Company Limited (Cenpower) andÂ Infraco Limited to boost power generation in Ghana, with the development of the Kpone Independent Power Project â€“ a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana.
According to a statement by AFC, Infraco Limited is 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.
The statement noted that 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 statement reads, â€œThe 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.
â€œThe landmark investment underscores AFCâ€™s mission to develop bankable power projects in order to address Africaâ€™s critical infrastructure gap.
â€œAFCâ€™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 countryâ€™s economic development.
â€œAs 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,â€ said Andrew Alli, Chief Executive Officer of AFC.