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Group Five wins R4-billion Ghana power deal

Group Five wins R4-billion Ghana power deal

Aug 25, 2014

Ghana’s Cenpower Generation Company has awarded Group Five a R4-billion (US$374 million) contract for the design and construction of a 350 megawatt gas and oil-fired power plant in Tema, the country’s major residential and industrial city.

According to the JSE-listed company, it will commence the project only once it receives a Notice-to-Proceed instruction after both commercial and financial close have been reached.

Having gained experience in the region after operating in Ghana for 15 years, Group Five says the contract duration is three years from award to commercial operation and the project is subject to certain conditions. Rand Merchant Bank, a division FirstRand Bank, is the coordinating lead arranger for the full commercial debt package, supported by the Export Credit Insurance Corporation of South Africa.

Group Five has successfully completed more than 10 EPC power contracts valued at R6 billion ($561 million) over the last seven years and the Kpone IPP is similar to a number of these. For this project, Group Five is charged with designing and building a 350MW gas-and oil-fired combined-cycle power plant.

Some 50% of the contract value is reportedly in power generation equipment, which will be supplied by General Electric (GE) and Siemens.

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