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11th November 2014

PIDG Facilities co-operate to develop Cenpower - a US$900m gas-fired power station in Ghana

Demonstrating the need for a range of interventions to bring complex infrastructure projects to close, three PIDG Facilities - InfraCo Africa, EAIF and TAF - were involved in the development and financing of the Kpone Independent Power Plant.

The Cenpower project, of which InfraCo Africa have been the principal project co-developers since inception, is expected to catalyse US$900m of private sector investment in Ghana’s electricity sector.

The Kpone Independent Power Plant (KIPP) is in the Tema industrial zone, close to Ghana’s capital, Accra. When the plant comes online in 2017 the 350 MW project will be the largest private IPP in the country, accounting for over 13% of its dependable capacity, which will enable real increased economic growth and reduction in poverty for years to come. Additionally, as a Combined Cycle Gas Turbine plant, it will be amongst Ghana’s most fuel-efficient thermal power stations.  Africa is the world's most power-starved region, with more than 700 million people lacking access to electricity.

The project finance comprises two components: a US$650m debt tranche and a US$250m equity tranche. The debt is being funded under export credit cover by a consortium of South African commercial banks and international Development Finance Institutions, including PIDG’s Emerging Africa Infrastructure Fund (EAIF). Via the equity raising, three leading investment groups will be joining the equity consortium whilst, having now developed the project to financial close, InfraCo Africa will be exiting.

Ebbe Hamilton, Partner at eleQtra – InfraCo Africa’s Principal Developer, said:In exiting this groundbreaking project, Infraco and eleQtra are delighted to be able to facilitate the entry of such blue-chip investors ... We are very proud to have been a key member of the development team of this truly African project.”

That a near US$1 billion transaction has been largely financed by African institutions is another ground breaking feature of the project and reflects the growing capacity of indigenous lenders and equity investors to begin to address Africa’s ongoing infrastructure deficit.