The International Finance Corporation (IFC) July 24, 2012 announced it is giving a loan of $80 million to the Takoradi International Company (TICO), to help expand its gas-fired Takoradi 2 power plant (“T2”) in order to generate more electricity in Ghana.
The IFC believes the increase of power will “spur economic growth” in the country.
Alongside the $80 million, IFC said it will provide an additional $15 million loan to TICO on behalf of the Canada Climate Change Program, for which IFC is the implementing agency.
TICO is a joint venture between Abu Dhabi National Energy Company PJSC (TAQA) which holds 90% with the Volta River Authority (VRA) having 10% in the venture. TAQA is the operator of the T2 facility.
TAQA on July 16, 2012 said it has secured a $355 million of project financing for the 110 megawatts expansion of the T2 power plant.
The African Development Bank (AfDB) on the same day (July 16, 2012) announced its approval of a $60 million loan for the project expansion which is expected to save Ghana about $30 million a year in fuel costs.
Mitsui & Co of Japan and Korea’s KEPCO have been contracted to start the expansion this month and expected to be commissioned in 2015, TAQA said.
T2 will use waste heat recovery technology for the expansion, which means the plant will be able to generate 50% 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, officials have said.
By Ekow Quandzie