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Business & Finance | Jan 28, 2005

UK firm to build thermal plant in Ghana

A United Kingdom power company, Globeleg, has begun initial negotiations with its Ghanaian partner, Cen-power, for the possible establishment of a gas-powered thermal plant to complement the Akosombo Hydro Power and the Aboadze Thermal Plant

When the deal is concluded, the company will be able to generate about 300 mega watts of power, which is about 20 per cent of power big generated by both the Akosombo and Aboadze power plants.

Globelg, which is wholly owned by the UK government, has over 2,400 net equity mega watts of electric power generation in 19 projects in 14 countries, including South Africa, Tanzania, Egypt and Cote d'Ivoire.

In an address at a roundtable forum in Accra last Wednesday to begin discussions on the investment, the acting British High Commissioner, Mr Robi Gwynn, noted that the gas plant in Ghana was being discussed at a time when the final investment decision had been reached for the West African Gas Pipeline to make the West African power pool meaningful.

He noted that the project would promote and consolidate regional co-operation and the economic integration of the sub-region.

Mr Gwynn said the UK remained a close supporter of Ghana's development across board by big the largest foreign investor, the largest bilateral development partner and the largest importer of Ghanaian goods from outside the sub region.

“The fact that Globeleg is considering his major investment demonstrates the confidence it places in the future of Ghana”, he said, adding that both Ghana and the UK would benefit from the investment and its related social economic opportunities.

He stated that the type of strategic partnership which Globeleg wanted to have with its Ghanaian counterpart reflected the relationship with the two countries enjoyed and hoped that 2005 would provide opportunities to further deepen the partnership.

Mr Gwynn gave assurance that the British High Commission would give the idea of the establishment of the project the needed support to help meet Ghana's need for more energy.

Nana Sam Brew Butler, a director of Cenpower, in an interview said Glonbeleg, as a strategic investor, was prepared o invest over $100 million in the project if negotiations were concluded.

He explained that the gas-powered thermal plant, if established, would supply power from the West African Gas pipeline to big companies such as the Volta River Authority (VRA) and, Electricity Company of Ghana (ECG) for onward distribution to their customers, including the mines.

The Senior Minister-Designate, Mr J.H. Mensah, in an address, said the government was engaged in the restructuring of the power sector to ensure that the country achieved its required power supply.

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