Following the completion of the original Quantum Terminals project, the Quantum Group required funding to invest in a new LPG storage facility in Tema called Quantum Gas Terminals. This will provide the storage requirements for Early Power, a greenfield 340 MW LPG fuelled emergency power plant in Tema.
In order to raise the financing to invest in the new terminal, Quantum Terminals needed to refinance its previous loan with a larger debt facility. Despite the original storage terminal having been completed and being operational, challenging economic conditions in Ghana severely limited commercial appetite for Ghana risk and Quantum faced difficulties in raising the required debt from commercial banks. GuarantCo’s guarantee helped a commercial bank to overcome its risk appetite limitations and enabled Quantum to raise the local currency debt financing it required.
GuarantCo’s support enabled Quantum to raise the required financing for the project which shall ultimately aid in facilitating the Early Power project, which will help to alleviate the severe power shortages in Ghana using cleaner LPG than typical emergency power solutions that use diesel and HFO.
Ghana also continues to benefit from the LPG that Quantum is providing to the market, which should bring significant health benefits to domestic users as a result of substituting wood/charcoal with zero emission LPG.