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Projects

Project Information

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.
 
Project Name Takoradi Power Project
Guarantee Holder Société Générale (Canada Branch)
Investor Country France
Host Country Ghana
Sector Power
Gross Exposure ($million) 40
Fiscal Year 2011
Status Proposed
Project Number 8425
Environmental Category B
Date SPG Disclosed September 30, 2010
Project Board Date November 1, 2010
ESRS ESRS Takoradi
EIA EIA Takoradi
 

This summary covers an investment by Société Générale Canada Branch (SGCB) in its subsidiary in Ghana, SG-SSB Limited, which will on-lend funds to finance the completion of Ghana’s Takoradi Power Plant. SBCB has applied for a MIGA guarantee of $40 million for a period of up to 14 years against the risk of non-honoring of sovereign financial obligations.

The project, located within the existing Takoradi T1/T2 power plant complex in the Ghanaian district of Sharma Ahanta East, will expand the existing combined cycle gas turbine power generation facility. The proposed expansion will furnish power to the national grid during peak demand and provide base load capacity in times of low water levels when hydroelectric generation is affected. 

Environmental Categorization

The project is Category B under MIGA’s Environmental and Social Review procedures. Construction and operations are expected to impact air, water, waste, noise, land use, community health and safety, and workers’ health and safety (specifically with regard to traffic and disease control).  Click here to view the Environmental and Social Review Summary.

draft environmental impact assessment, a provisional environmental management plan, and the Takoradi Thermal Plant Station environmental management plan adequately address the negative impacts identified for the facility’s expansion as well as the cumulative impacts associated with the power plant in general.

Development Impact

The expansion of the Takoradi Power Plant will allow it to feed more electricity to Ghana’s national grid, allowing broader and more reliable access to power for Ghanaians across the country. Efforts to bolster the energy sector are essential to avoid blackouts, such as the ones Ghana experienced in 2008. The project fits into the government’s power sector plans, which specifically seek to: increase installed capacity from 2000 MW to 5000 MW and become a net exporter of electricity to neighboring countries by 2015; encourage independent power producers to invest in the country; and achieve 10 percent of electricity generation with renewable energy sources by 2020.

MIGA’s proposed support for the project is also aligned with the World Bank Group’s Country Assistance Strategy for Ghana, which urges the strengthening and expansion of the country’s power generation and distribution systems.

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