Accra, Ghana, September 08, 2014 – IFC, a member
of the World Bank Group announced that it has signed a Memorandum of Understanding
with the Volta River Authority (‘VRA’), Ghana’s national power generation
utility, to support private sector investment in Ghana’s power sector.
The Government of Ghana, as outlined in the Ghana National Energy Policy,
has prioritized the increase of installed generation capacity in the country
to 5,000 MW by 2016, in order to drive the country’s economic growth.
The Government is encouraging private sector investment in the Ghanaian
power sector in order to help achieve this objective. IFC and VRA have
identified a number of generation opportunities to contribute to domestic
power supply in line with the National Energy Policy, and will co-operate
with respect to the development and financing of VRA’s generation opportunities.
These proposed projects will be developed in partnership with internationally
reputable and experienced power generation developers.
The power plants that are being jointly developed are expected to operate
on a lower cost basis to ensure delivery of affordable electricity to Ghanaians.
These plants are also expected to support alternative fuel projects such
as liquefied natural gas import solution, and renewable energy projects.
“IFC is committed to supporting the goals of the Ghana National Energy
Policy to increase installed generation capacity over the next few years
to meet the growing energy needs of Ghanaians,” said Richard Arkutu, IFC
Manager, Africa Special Initiative for Infrastructure. “By partnering
with the Volta River Authority, we are able to identify the correct entry
points for the private sector to have an impact on the country’s development
goals in the electricity sector.”
IFC’s potential investments will be provided via a number of instruments
including early stage project development funding under IFC’s InfraVentures
project development fund; equity and senior loan participations; mezzanine
and quasi equity participations; and mobilizing risk mitigation instruments
such as World Bank Group partial risk guarantees and MIGA political insurance.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
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