Few entities exist that can issue a payment guarantee of this nature, particularly for the benefit of a structured project in a challenging market such as Ghana. The extremely short timelines required under the Power Purchase Agreement precluded senior financing reaching financial close in time for the project to meet its deadlines – GuarantCo’s guarantee helped a private sector investor to bridge the financing gap and deliver power to Ghana under a shorter timeframe than historically achieved. The remaining debt financing was provided by Metka.
Ghana’s existing power portfolio relies on hydrological resources for 42% of its capacity. Bridge Power will help to diversify Ghana’s power portfolio.
Ghana is currently experiencing power shortages and presents one of the largest barriers to the country’s economic development. The project will be delivered under a shorter timeline relative to other IPPs, thereby contributing relatively quickly to reducing Ghana’s power shortage.
LPG is a lower cost and cleaner alternative vs. light crude oil and diesel which Ghana has come to increasingly rely upon as demand has grown. It is estimated that the project will emit 20% lower CO2 emissions compared to other oil based thermal power plants in Ghana.