South African construction company Group Five has bagged a ZAR4 billion (US$374 million) deal for the design and construction of a 350 MW gas and oil-fired power plant in Kpone municipality in Ghana.

Technology giants, including General Electric and Siemens, will supply the power generation equipment, worth about 50 per cent of the contract value.

A spokesman from Group Five said the contract is for three years and runs from award to commercial operation. The deal is now subject to commercial and financial close.

The representative said: “Only once both commercial and financial close have been reached will the group receive a Notice-to-Proceed instruction that will trigger the commencement of contract execution.”

Rand Merchant Bank, a division of South Africa’s third biggest bank, FirstRand Bank, is the coordinating lead arranger for the full commercial debt package, with support from the Export Credit Insurance Corporation of South Africa.

Group Five has completed more than 10 EPC power contracts valued at R6 billion (US$561 million) over the past seven years and has been operating in Ghana for the past 15 years.

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