Amandi Energy Limited announced last week that it has reached financial close and started construction of the $ 552 million Amandi Energy power plant in Aboadze, Ghana.
The 200 MW plant is a combined cycle, dual fuel power project, the only large-scale independent power generation project in sub-Saharan Africa to have reached financial close to date in 2016, Endeavor Energy said. , majority owner of the project, in a press release.
Prior to the financial close, Amandi Energy partnered with the majority owner of the Endeavor Energy project (Endeavor), an independent Africa-focused power company backed by global private equity firm Denham Capital, and Aldwych International (Aldwych ), a leading developer, owner and operator. of electricity production projects in sub-Saharan Africa.
An Amandi Energy spokesperson commented: “We started this journey four years ago with a strong belief in the Ghanaian power sector and a commitment to contribute to its growth and success, and we have been able to to build a strong management team focused on delivering this complex. transaction.”
Helen Tarnoy, Managing Director of Aldwych, said: “Aldwych International has acted as co-developer and technical partner for 2.5 years of development and we are delighted to see the successful conclusion of this effort.
Harith CEO and Aldwych Chairman Tshepo Mahloele added: “The financial close of the Amandi project represents a critical moment to meet Africa’s growing demand for reliable power infrastructure and the continuing lack of properly packaged bankable projects. in the field of energy. The project will help Ghana by achieving its development goals and unleashing the country’s industrial potential.
Amandi power station
According to the statement, when built, the plant will be one of the most efficient power plants in the country and will produce more than 1,600 GWh per year, powering up to one million Ghanaian households.
The Electricity Company of Ghana (ECG) is the main buyer with a 25-year power purchase agreement.
The plant will initially be powered by light crude oil, but is expected to switch to native gas from Ghana’s Sankofa offshore natural gas field when available.
The Amandi project will be fully built within 28 months and should go live in April 2019.
Securing strategic partners
The $ 552 million investment required for the Amandi project includes $ 134 million of equity from the sponsoring group, which includes Endeavor, AFG, Aldwych, Pan African Infrastructure Development Fund 2 managed by Harith General Partners (PAIDF2) and ARM -Harith Infrastructure Fund (ARMHIF).
The $ 418 million debt financing is provided by a group of lenders, including the U.S. government development finance institution Overseas Private Investment Corporation (OPIC), which will provide a $ 250 million loan, as well as CDC Group plc, which will provide an $ 83 million loan, Nedbank Limited and Rand Merchant Bank.
“Additional power is essential in Ghana as it seeks to meet an ever increasing demand and CIPO is proud that this project is helping to support it,” said Elizabeth L. Littlefield, President and CEO of the OPIC.
“OPIC’s funding and reinsurance will enable the construction of a combined cycle gas turbine power plant that will not only meet energy demand, but will seek to further develop its economy by creating jobs for local Ghanaians. .
Sean Long, CEO of Endeavor, added: “Ghana has embarked on a mission to strengthen its power sector, which has now created an opportune moment for international investment.
“We are very happy to be working with the Ghanaian government and ECG, as well as with Amandi Founder Group and Aldwych, to make this project happen. We are also proud of the Denham Capital and Endeavor teams for working successfully with our committed partners to achieve the financial close of the required $ 418 million debt financing for the Amandi project while continuing to execute other projects. energy sources across the continent. “
Holger Rothenbusch, Managing Director of CDC, Debt, concluded: “We are very happy to be a part of this project which is our largest debt commitment in Africa to date and has the potential to create thousands of direct jobs and indirect in the region, not to mention the strengthening of existing businesses through more consistent access to electricity.