Abu Dhabi National Energy Company (TAQA) and electric supplier Volta River Authority (VRA) have completed the $330m financing for the expansion of the 220MW Takoradi 2 power plant in Ghana.
Scope of the expansion project includes conversion of the existing gas-fired power station at Aboadze into a combined cycle unit.
With the expansion, the current output of the power plant is expected to increase by over 100MW to 330MW, without requiring additional fuel.
The VRA will buy the extra power generated at the Takoradi 2 plant, under a revised 25-year power purchase agreement.
The latest financing for the project is being provided by the International Finance Corporation (IFC), a World Bank Group member, and a consortium led by FMO, a development bank majority-owned by the Dutch government.
TAQA Power & Water head and executive officer Frank Perez said the company has brought many lenders together for this strategic energy project.
"This expansion will help Ghana’s growing population meet their energy needs and provide the power needed for economic growth," Perez added.
The other participating lenders in the consortium include African Development Bank, Deutsche Investitions-und Entwicklungsgesellschafte, Emerging Africa Infrastructure Fund, ICF-Debt Pool, and Proparco.
International Finance Company, the Canada Climate Change Program and the Organisation of Petroleum Exporting Countries (OPEC)Fund for International Development are also participating in the project.
Takoradi International Company, which owns the power plant, is a joint venture between TAQA and VRA. TAQA is the operator of the plant with 90% share in the JV.