26 September 2007 – The Shenzhen Energy Investment Co Ltd of China plans to team up with the China-African development fund to build a 200MW gas fired power plant in Ghana, it was revealed on Wednesday.
The China-Africa development fund, set up by the Chinese government in June, and Shenzhen Energy plan to form a venture in Ghana with an estimated cost of 1,03 billion Yuan.
The fund, with initial capital of $1 billion, forms part of Beijing’s pledge to double aid to Africa and is the first part of a $5 billion fund promised by Chinese president Hu Jintao in November 2006.
This announcement comes amid recent international criticism of Chinese aid to Africa as aimed at gaining access to scarce resources for Chinese companies.
The project, which would use two generators currently used in power plants owned by Shenzhen energy, will be commercially viable the statement said. Shenzhen Energy would have a 60 percent stake in the project, with the China-Africa fund holding the remaining 40 percent.
The 200MW plant is the first phase of a 560MW project in Ghana, where power demand is growing at six percent a year.