New power plant to be constructed at Kpone
A power purchase agreement (PPA) has been signed between Cenpower Generation Limited and the Electricity Company of Ghana (ECG) for the construction of a power generation plant at Kpone to produce 350 MW of power.
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To be known as the Kpone Independent Power Producer (KIPP), construction of the power plant is expected to be completed in 2017.
Present at the signing ceremony were Mr Dario Musa, Director of Rand Merchant Bank and Mr Frank Beecham, Board Secretary of Cenpower.
The rest are Dr Jimmy Heymann of Cenpower; Mr Oliver Andrews of AFC / Cenpower and Mr W. Hutton-Mensah, Managing Director of ECG.
Preparatory work
The Cenpower Generation Limited has also signed an agreement with an international construction firm, Group Five, based in South Africa for the engineering, procurement and construction (EPC) of the power plant.
The agreement has a duration of three years, from award to commercial operation and stipulates that “once both commercial and financial close have been reached, the group will receive to-proceed instruction which will trigger the commencement of contract execution”.
Meanwhile, the project has received approval from Cabinet and Parliament.
Other partners for the project are the Africa Finance Corporation (AFC) in Lagos, Nigeria and eleQtra, a private infrastructure developer.
The project will ultimately become one of the main off-takers of natural gas from the West African Gas Pipeline which links gas fields in Ghana and Nigeria to the Tema Industrial zone.