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08.06.2004 Business & Finance

IFC gives 60 million dollars loan for electricity

By GNA

Accra, June 8, GNA - The International Finance Corporation (IFC) of the World Bank has approved 60 million dollars loan for the expansion of the Takoradi II Thermal Power generating plant from its current capacity of 220 Megawatts to 330 Megawatts.

The loan would be provided in two 30 million dollars tranches, a press release from the IFC to the Ghana News Agency on Tuesday said. It said the first tranche would help re-capitalise the project to reduce the purchase tariff for the electricity generated by the plant. The second half would finance the cost of conversion of the simple cycle power plant into combined cycle operation to further reduce the cost of power produce by the facility.

The statement said the IFC's Board approval reflected an acknowledgement of the efforts of the Government in undertaking the much-needed comprehensive reform of the energy sector and the successful development of the data by CMS, a US Energy Company, which owned 90 per cent of the plant, and the Volta River Authority that owned 10 per cent. Quoting Mr Francisco Tourreilles, the IFC Director for Infrastructure, the statement said, "IFC's financing for the combined cycle phase of the Takoradi II will support a project that is key to improving the availability of reliable and competitive electricity to the Ghanaian population...

"And for the critical development of the West Africa Gas Pipeline for which the Takoradi Power Complex will become an anchor customer," he said.

Mr Joshua Ofedie, Chief Executive of the VRA, said: "IFC investment in Takoradi II will immediately reduce the cost of production from the existing plant...IFC's confidence in the power sector has a broader impact in helping to attract private investment into the Ghanaian power sector".

Mr Thomas Edward, President and Chief Executive Officer of CMS Generation, said the approval was also a step forward for the Takoradi II expansion.

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