2 August 2012 – IFC, a member of the World Bank Group, is providing an US$80 million loan to Takoradi International Company (TICO), to help expand its gas fired Takoradi II power plant in Ghana.
TICO is a joint venture between Abu Dhabi National Energy Company PJSC (TAQA) (90%) and Volta River Authority (VRA) (10%), the main generator and supplier of electricity in Ghana. TAQA is the operator of the facility.
Takoradi II 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 Takoradi II.
Alongside the US$80 million, IFC will provide an additional US$15 million loan to TICO on behalf of the Canada Climate Change Program, for which IFC is the implementing agency. The OPEC fund for international development will provide US$22.5 million, and the balance of the US$330 million debt financing will be provided by a consortium of international development finance institutions.
Takoradi’s expansion responds to increasing demand for electricity in Ghana. While the country enjoys a relatively high electrification rate of 61%, Ghana’s growing economy has stretched the power sector, which mostly relies on hydro generated power from Lake Volta.
The plant previously ran on light crude oil, but with increasing offshore gas finds in Ghana and Nigerian gas now flowing to Ghana through the West African Gas Pipeline, the existing turbines have been converted to dual fuel capability, to also run on natural gas.
Yolande Duhem, IFC director for west and central Africa says, "The expansion of Takoradi II demonstrates how the private sector can help increase supply and reduce the cost of power generation in west Africa. Takoradi II is the first commercial project financing for an independent power project in Ghana, and will serve as a landmark as the government of Ghana continues to encourage private sector participation in power."
Increasing power generation is at the heart of IFC’s strategy for infrastructure development in sub-Saharan Africa. IFC invested US$1 billion in infrastructure projects in Africa in fiscal year 2012, up from US$200 million five years ago.