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Vice President Amissah-Arthur has assured Independent Power Producers (IPPs) of government’s commitment in addressing the challenges facing their participation in the energy sector and would also ensure that governments 2016 production target of 5,000 Mega Watts (MW) was achieved to meet the increasing demand.
Vice President Amissah-Arthur made the statement on Thursday 29th January 2015, when he cut the sod for the construction work to start on a 350 Megawatts Independent Power Plant by CEN Power Generation Company Limited in Kpone in the Greater Accra Region.
He assured them of government continuous support in time of challenges and urged them to call on them when the need arises.
According to him, the demand rate is about 12 percent in a year, something that outstripped supply in the country, so as a result of that government would have to shed power at peak time and as a result affects a lot of businesses.
Mr Kwesi Amissah Arthur said that at the moment government is doing whatever it can to help solve the situation and has so far invested in about 1000 generation of capacity in the past six years.
According to Mr. Amissah Arthur, currently there are 16 power generation projects in the country and are near completion, so with improved capacity in the power sector business would improve and also create more jobs opening for the people especially the youth in the country.
He said because of the increasing rate of demand for energy, the government remained mindful of the need to encourage more independent power producers to participate in power production to complement government’s efforts and lauded CEM Power for being part of the success story of providing a power plant with the capacity of 350 MW in Ghana.
Vice president Kwesi Amissah Arthur said the project when finished has a Combined Cycle Gas Turbine technology for the plant to use GE Frame 9E gas turbines operating on both natural gas and liquid fuel, thus ensuring high continuous power availability.
Nana Sam Brew Butler, Chairman of Cenpower Generation, said this is the very first BOOT Power project and the current owner have agreed to transfer it to ECG i.e. State of Ghana at the expiration date of its 20 year PPA, for one US dollar even though the plant would have life of another 10 to 15 years.
He said the project has ensured that it would not compromise on government’s policy of domestic participation and transfer of technology and assured government of reasonable local participation in the construction works at various levels.
He said the project when completed has the capacity to provide, at current consumption levels, power for the entire Brong Ahafo and Ashanti Region with a bit available for Central region.
According to him the project when completed incorporates a collector substation to serve other stations in the energy Enclave, a Substation that would eventually be transferred to GRIDCO and also has three inbuilt cost cover for these types of fuel.
Mt Butler said the source of initial fuel (three months storage) will be on site as well as Adinkra, located next door owned by Chase and Vitol.
This initiative he said means that the state would not be burdened with any arduous responsibility of importing fuel for its operations and the plant will not shut down because of lack of fuel.
Nana Butler said the total cost of the project stands at US Dollars 900 that consist of US Dollar 650 million debt backed by ECIC and US Dollar 250 million equity from sponsors.
The project has with from both local and international banks and is expected to augment the national power production significantly upon completion.
It is expected to become the largest private sector driven power project in Africa.
The ceremony was graced by the Petroleum Minister Hon Armah Kofi Buah, Power Minister, Dr Kwabena Donkor , Chairman of ECG board ,Dasebre Kwesu Ewusi , Oguaa Omanhene Osabarima Kwesi Atta , Kpone Mantse Nii Tetteh.
Out and other executives were Sumitomo Corporation from Japan, Cen Power Generation Limited of Ghana Standard Bank, IFC and other captain of the industry.
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