On February 3, 2012, MIGA issued a guarantee of $88.4 million to Société Générale Canada Branch (SGCB) covering its loan to the government of Ghana to finance the completion of the Takoradi 3 Power Plant. The coverage is for a period of up to 15 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.
The expansion of the Takoradi 3 Power Plant will allow it to feed more electricity to Ghana’s national grid, allowing broader and more reliable access to power. 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 megawatts to 5000 megawatts and enable Ghana to become a net exporter of electricity to neighboring countries by 2015.
MIGA’s 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. The project is also aligned with MIGA’s strategic objectives of supporting complex infrastructure projects and investments into countries eligible for concessional financing from the International Development Association.