GuarantCo provides innovative USD 50 million EPC contractor payment guarantee for stage I of Bridge Power plant in Ghana
Bridge Power will provide cleaner power to over a million people in Ghana
GuarantCo will provide an EPC contractor payment guarantee for stage I of the Bridge Power plant in Ghana. Bridge Power, a greenfield multi-fuel combined cycle power plant in Tema, Ghana, has started construction with vendor financing including an EPC contractor payment guarantee provided by GuarantCo. Stage I of the project totals a net 202 megawatts and will begin delivering electricity to the Ghanaian power grid in Q4 2019. Once fully constructed, the Bridge Power plant will be the largest Liquefied Petroleum Gas (LPG) power project in the world and will also meet local and international (World Bank / IFC) environmental requirements.
The guarantee provided by GuarantCo, a Private Infrastructure Development Group (PIDG) company, will enable construction for stage I of the power plant to begin whilst long-term financing is being arranged, allowing the project to progress in order to deliver much-needed, cleaner power to over a million people in Ghana. The project will add approximately 5 percent to the country’s generating capacity. Stage I of the project will create up to 200 jobs (majority Ghanaian) during construction whilst a further 35 people will be employed as part of ongoing permanent operations of the life of the plant.
The Bridge Power project is sponsored by a consortium that includes Endeavor Energy (Endeavor), Sage Petroleum (Sage) and General Electric (GE). Endeavor is a leading Africa-focused independent power company backed by global energy-focused private equity firm Denham Capital and is the lead developer and majority owner of the project. Endeavor will also lead the operations and maintenance of the power plant and will provide the construction and commercial management of the project. Sage is a leading fuels company in Ghana who played a key role in the project’s development and who will be its fuel supplier and owner/operator of the project’s LPG fuel infrastructure. GE is a world energy leader providing equipment, solutions and services across the energy value chain from generation to consumption.
Bridge Power will help to diversify Ghana’s power portfolio and reduce its heavy reliance on finite hydrological resources. This, together with the reliable baseload power that it will provide, will help to facilitate the country’s economic development and reduce its reliance on diesel and heavy fuel oil. LPG is a lower cost and cleaner alternative to light crude oil and diesel, which Ghana has been using increasingly due to growing demand.
The Bridge Project is specifically designed to provide fuel diversity, optionality and security for Ghana. GE will supply the power generation equipment for the project which will include GE’s TM2500 gas turbine generator sets and GE’s steam turbines in a combined cycle (CC) configuration. This will be the first time the TM2500 gas turbines will be used in a combined cycle configuration globally and marks a milestone for the technology.
Lasitha Perera, CEO of GuarantCo, said: “We are proud to have developed this innovative contractor payment guarantee for Bridge Power and to make a vital contribution to Ghana’s energy needs. 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. Our guarantee helped a private sector investor to bridge the financing gap and deliver power to Ghana under a shorter timeframe than historically achieved.”
Sean T. Long, President and CEO of Endeavor, said: “I would like to extend a warm thanks on behalf of Early Power Limited to the Government of Ghana and to all of our project partners for their continuous support and dedication in bringing this project to fruition. The Bridge Project is fully aligned with Ghana’s national economic and social development goals and represents the second investment in Ghana’s power sector by Endeavor. With the Bridge Project and Endeavor’s majority interest in the $557 million Amandi Power Project located near Takoradi, Endeavor is leading over $1.5 billion of foreign direct investment in Ghana, helping to create jobs and deliver additional low-cost power solutions for Ghana.”
Emmanuel Egyei-Mensah, Chief Executive Officer of Sage, commented: “Ghana has made great strides over recent years to strengthen its power sector whilst at the same time creating an open and successful environment for international investment. This project, which includes the construction of LPG import and storage infrastructure, will expand Ghana’s existing LPG capabilities enabling the country to import three times more LPG each year. This will definitely lead to significant improvements in domestic LPG supply availability and market penetration, which in turn will bolster the drive to make Ghana’s energy sources more diversified and secure.”
Notes to editors
About Endeavor Energy
Endeavor Energy is a leading Africa-focused independent power producer (IPP) company headquartered in Houston, Texas, USA with multiple international presence in offices in Cote d’Ivoire, Ghana, Guinea and United Arab Emirates. Backed by Denham Capital, Endeavor Energy develops, acquires, finances, owns and operates integrated thermal, hydroelectric, biomass, waste-to-energy, solar, wind and “hybrid, first-of their-kind” power generation plants in Africa. Since its founding by Sean T. Long in 2013 with a globally-experienced management team, Endeavor Energy has become a leading power generation and development company focused on providing customized energy solutions for individual country needs in Africa. Endeavor has an extensive development pipeline of projects across the continent, over 640MW of projects in various stages of construction and an established track record as an international lender-approved project developer and investor. Endeavor has catalysed over $1.1 billion of investment to date with an additional $500 million to be invested in Stage 2 of the Bridge Project plus another $4.4 billion of power generation projects under development. With the financial and strategic backing of energy-focused global private equity investor Denham Capital, the company possesses significant development, financial and operational capability to generate and participate in multiple complex integrated power projects in Africa. Endeavor Energy is also a sponsor of the U.S. government’s Power Africa initiative. www.endeavor-energy.com.
Sage is a licensed Petroleum Trader and Bulk Distributor in Ghana and is a subsidiary of the Quantum Group Limited (the Group), a wholly-owned Ghanaian entity, with interests in petroleum trading & distribution, terminals & infrastructure development, power generation and technology & communications sectors. The Group currently employs over 2,500 people. Sage imports petroleum products for sale in Ghana primarily to Oil Marketing Companies and Mining companies. Sage also supplies fuel to Power Plants and since February 2017, has been the sole supplier of Light Crude Oil (LCO) to a Power Plant in Ghana, supplying more than 67 million litres (430,000 Barrels) to the Plant. www.sagetradinggroup.com
GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG), is supported by the governments of the United Kingdom, Switzerland, Sweden, the Netherlands and Australia, and is rated AA- by Fitch and A1 by Moody’s. www.guarantco.com
The Private Infrastructure Development Group (PIDG) encourages and mobilises private investment in infrastructure in the frontier markets of sub-Saharan Africa, south and south-east Asia, to help promote economic development and combat poverty. Since 2002, PIDG has mobilised $33.7bn from private sector investors and DFIs, supported 170 infrastructure projects to financial close and provided 231 million people with access to new or improved infrastructure. PIDG is funded by donors from seven countries (United Kingdom, Switzerland, Australia, Norway, Sweden, the Netherlands and Germany) and the World Bank Group. www.pidg.org