[Editors Note: This release updates and corrects a previous release issued by IFC on July 24, 2012)
Accra, Ghana, July 27, 2012
- IFC, a member of the World Bank Group, is providing an $80 million loan to Takoradi International Company, to help expand its gas-fired Takoradi 2 power plant, known as T2, in Ghana, increasing the generation of
electricity in the country to spur economic growth.
TICO is a joint venture between Abu Dhabi National Energy Company PJSC (TAQA) (90 percent) and Volta River Authority (10 percent), the main generator and supplier of electricity in Ghana. TAQA is the operator of the facility.
T2 will use waste heat recovery technology for the expansion, which means the plant will be able to generate 50 percent more electricity with only marginal incremental fuel consumption and without increasing greenhouse gas emissions. The increased efficiency will also lower the cost of electricity generated by T2.
Alongside the $80 million, IFC will provide a $15 million loan to TICO from the IFC-Canada Climate Change Program. The program is a part of Canada’s commitment to support climate change action in developing countries. The OPEC Fund for International Development will be providing $22.5 million for the project, and a consortium of international development finance institutions led by FMO of the Netherlands will provide $330 million in debt financing. The financing demonstrates IFC’s long-standing commitment to the Ghanaian electricity sector, and also complements IFC’s work in the country’s oil and gas sector.
T2’s expansion responds to increasing demand for electricity in Ghana. While the country enjoys a relatively high electrification rate of 61 percent, Ghana’s growing economy has stretched the power sector, which mostly relies on hydro-generated power from Lake Volta. The plant previously ran on light crude oil, but with increasing offshore gas finds in Ghana, and Nigerian gas now flowing to Ghana through the West African Gas Pipeline, the existing turbines have been converted to dual fuel capability that allows them to also run on natural gas.
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 electric tariff 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.”
Yolande Duhem, IFC Director for West and Central Africa said, “The expansion of Takoradi 2 demonstrates how the private sector can help increase supply and reduce the cost of power generation in West Africa. Takoradi 2 is the first commercial project financing for an independent power project in Ghana, and will serve as a landmark as the government of Ghana continues to encourage private sector participation in power.”
Increasing power generation is at the heart of IFC’s strategy for infrastructure development in sub-Saharan Africa. IFC invested $1 billion in infrastructure projects in Africa in fiscal year 2012, up from $200 million five years ago.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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About the IFC-Canada Climate Change Program
The IFC-Canada Climate Change Program promotes private sector financing for clean energy projects. Canada’s financing to IFC for this program is part of its overall fast-start financing contribution for 2010–2011. Under the Copenhagen Accord, developed countries committed to provide fast-start financing of almost $30 billion for 2010–2012 to support climate-change mitigation and adaptation in developing countries. As part of Canada’s commitment to support climate change action in developing countries, Canada is contributing $1.2 billion Canadian dollars in new and additional climate-change financing over three years (fiscals 2010–2013).
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