[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
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.
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).