UAE's Taqa completes $330m financing for Ghana power plant expansion

Taqa has completed with its partner Volta River Authority, the main generator and supplier of electricity in Ghana, a $330 million financing for the expansion of a power plant in the African country.

Taqa has completed with its partner Volta River Authority, the main generator and supplier of electricity in Ghana, a US$330 million financing for the expansion of a power plant in the African country.

The project financing came from World Bank unit International Finance Corp (IFC) and a consortium of financial institutions that include FMO, the majority Dutch government-owned development bank, the African Development Bank and Deutsche Investitions-und Entwicklungsgesellschaft (DEG), Abu Dhabi Government-owned Taqa said.

Taqa, also known as Abu Dhabi National Energy Company, will expand the Takoradi 2 power plant's capacity from 220 megawatts (MW) to 330MW without requiring additional fuel and the extra energy will be sold to Volta River Authority under the terms of a revised 25-year power purchase agreement.

The expanded plant is scheduled for commissioning in 2015.

The Takoradi 2 plant is Ghana's first independent power project and currently represents approximately 15 per cent of Ghana's installed capacity. It is owned by Takoradi International, a joint venture between Taqa, who owns 90 per cent of the plant and Volta River Authority, which owns remaining 10 per cent stake.

Taqa's assets and operations currently are focused in North America, the Netherlands and the UK, but it is trying to expand its reach in the Middle East and North Africa.

* Dow Jones