Ghana’s Amandi Energy has commenced construction of a $552m combined-cycle, dual-fuel power project in Aboadze.
The new 200MW plant is the only large-scale base-load independent power generation project in sub-Saharan Africa that has reached its financial closure.
Amandi Founder Group (AFG) collaborated with the majority owner of the project, Africa-focused independent power company Endeavor Energy, which is backed by private equity firm Denham Capital and power generation company Aldwych International (Aldwych).
With completion of construction, the new facility is expected to be one of the most efficient power plants in Ghana and will help the country meet its increasing power demands.
Once in operation, the project will have the capacity to generate more than 1,600GWh of energy every year, which can be used to meet the electricity needs of up to one million homes in the country.
Generation from Amandi Energy plant will be sold to the Electricity Company of Ghana (ECG) under a 25-year power purchase agreement (PPA).
Endeavor Energy's chief executive officer (CEO) Sean Long said: “Ghana embarked on a mission to strengthen its power sector that has now created an opportune time for international investing. We are very pleased to be working with Ghana’s Government and the ECG, as well as the Amandi Founder Group and Aldwych, to realise this project.
“We’re also proud of the Denham Capital and Endeavor teams for successfully working with our committed partners to achieve financial close on the required $418m of debt financing for the Amandi Project while at the same time continuing to execute on other important power projects across the continent.”
Initially, the plant will use light crude oil. It is later expected to change to indigenous gas sourced from Ghana’s offshore Sankofa natural gas field.
Expected to create 400 construction jobs and up to 40 full-time jobs, the new project will complete construction within 28 months and is estimated to become operational in April 2019.