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The Early Power consortium has announced it has received parliamentary approval from the Government of Ghana to develop a 400MW greenfield Bridge Power plant at Ghana's Tema Port
A 20-year power purchase agreement, which includes a five-year extension option, was signed with the Electricity Corporation of Ghana (ECG) and will generate power in two phases: 194MW in phase one and 206MW in phase 2.
It is reportedly the first project to use a Put Call Option Agreement (PCOA), allowing the government to purchase the plant and associated assets in the event the contract is terminated, meaning any payment under the PCOA will directly benefit Ghana.
African Review is seeking further clarity and comment from the government on the terms of the PCOA.
The Early Power consortium is comprised of Africa-focused independent power producer Endeavour Energy, trading firm Sage and digital industrial company General Electric via its GE power division.
Project finance will be raised by equity invested and debt raised by Early Power, with Endeavour providing the majority of the equity in addition to managing the plant's construction and operation.
Consortium partner Sage created the plant's gas-to-power solution using LPG as the primary feedstock.
GE will provide 400MW of power generating capacity through nine GE gas turbines and two purpose built GE steam turbines in two seperate combined cycle gas turbine configurations.
The company will also help accelerate the first phase of the project by providing an 'on balance sheet' capital option and implementing a long-term service agreement for the plant.
"Bridge Power is a first of its kind in Ghana," commented Endeavour Energy CEO Sean Long.
"We've customised our project to provide quick and reliable energy production for Ghanaians in order to assist Ghana's economic growth and create jobs.
"Our understanding of Ghana's long-term vision for its power sector is built on having reliable and diversified energy. Bridge Power checks all those boxes."
The Bridge Power project, set to be built in the most economically active part of Ghana, is expected to begin producing 144MW of power within the first six months to meet the country's immediate power shortages.
It will also deliver significant economic benefits to Ghana, with Bridge Power contributing more than 12 per cent of the country's planned generation capacity by 2020. It will also help to grow the industrial, light manufacturing and agro-based processing sectors.
Watch out for a future issue of African Review to read more about Ghana's new Bridge Power project.