Name and Location
Kpone independent power plant (Kipp) project, Ghana.

Client
Cenpower Generation Company.

The African Infrastructure Investment Fund 2 (AIIF2), which is advised by African Infrastructure Investment Managers (AIIM) – a joint venture between Macquarie Africa and the Old Mutual Investment Group – together with its co-investors, own a direct 15% interest in Cenpower through an interposed investment vehicle, Mercury Power.

Mercury Power has also subsequently increased its economic exposure to the project to about 30% through its investment in another of Cenpower’s shareholders, Cenpower Holdings.

Cenpower Holdings is the investment vehicle through which the founding local shareholders of Cenpower will hold their investment in the project.

Other shareholders in Cenpower include the Africa Finance Corporation, Sumitomo Corporation and Dutch development bank FMO.

AIIF2 and AIIM were also involved in Nigeria’s 450 MW gas-fired Azura-Edo independent power plant project, which would be located in Edo state, Nigeria.

Project Description
The project involves the construction of a 350 MW gas- and oil-fired combined-cycle power plant in the municipality of Kpone, within the Tema industrial zone, in Ghana.

Once Kipp comes on stream in 2017, it will be the largest independent power producer in the country, accounting for about 10% of Ghana’s total installed capacity and about 20% of its available thermal-generation capacity.

Value
$900-million.

Duration
The project is expected to come on stream in 2017.

Latest Developments
Following the fulfilment of the conditions precedent to its debt financing agreements, Cenpower has reached financial close on the $900-million financing required for the construction and development of its Kipp project.

The start of construction is "imminent" and is expected to take 32 months.
The financing documents for the Azura-Edo IPP were signed in December and financial close is expected early this year.

“Cenpower represents AIIF2 and AIIM’s first investment in Ghana, which is a jurisdiction we have been keen to invest in for some time. We are very proud to be associated with the groundbreaking Kpone [project], which will be a key part of plans to alleviate the power supply shortfalls currently being experienced in Ghana.

“We expect that it will be the first of many IPPs, where the private sector and international investors can play a meaningful role in strengthening Ghana’s power sector,” AIIM CEO Jurie Swart said in a statement.

Key Contracts and Suppliers
Group Five (engineering, procurement and construction); General Electric and Siemens (power generation equipment); Rand Merchant Bank, Nedbank, Standard Bank and the FMO (finance arrangements).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Cenpower Generation Company, tel +233 222 8736 or fax +233 30 2255094.
Group Five, tel +27 10 060 1555, +27 86 206 3885 or email groupfiveho@groupfive.co.za.
General Electric, tel +27 11 237 0000.
Siemens head of corporate communications Jose Machado, tel +27 11 652 2000 or email josemachado@siemens.com.