AfDB approves $60m loan for Ghana thermal plant expansion
The African Development Bank (AfDB) today announces approval of a $60 million loan for Ghana to expand the Takoradi thermal power plant.
The Board of Directors of the AfDB Group through its private sector window approved the loan Wednesday July 11, 2012 in Tunis, the lender said in a press release issued today, July 16, 2012.
According to the AfDB, the senior loan for the expansion of the plant aims at improving electricity supply and energy security in Ghana.
Ghana’s electricity supply capacity is currently insufficient to meet the expected increase in demand per year of 6.5 percent.
The Takoradi II thermal plant project consists of the expansion of the existing 220 MW single cycle gas/fuel oil power plant to a 330 MW combined cycle by adding a 110 MW steam turbine to the exhaust vent of the existing plant which has been in operation since September 2000, the AfDB said.
Ms. Tas Anvaripour, the AfDB’s Head of Infrastructure Finance and PPP, was cited in the release saying, “this project is a model example of a ‘Green Growth’ PPP project featuring a national utility investing alongside private sponsor.”
She said the project has a strong economic rationale behind it, which is able to deliver highly competitive base-load energy and help the power system in Ghana to diversify from hydro and oil dependency, adding that, “moreover the project will reduce Ghana’s over-reliance on climate-vulnerable hydropower and as a conversion from simple to combined cycle will increase the power plant output capacity by 50% at no additional fuel and no additional carbon emission impact.”
By Emmanuel K. Dogbevi
This project was halted due to money mismanagement, the usual government intervention, corruption, greed, etc. So why is AfDB dishing out this money as loan to the country. I must say that without serious efforts to change mindset and attitudes of the leaders and people in this country, the idea that our problems will be solved with more development money is a fools bet.