Allen & Overy has advised International Finance Corporation (IFC) as co-lead Negotiator, Hedging Bank and Arranger for the OPEC Fund for International Development and the Canada Climate Change Program; and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) as Mandated Lead Arranger for a consortium of lenders comprising the African Development Bank, Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), Emerging Africa Infrastructure Fund, ICF-Debt Pool and la Société de Promotion et de Participation pour la Coopération Economique (Proparco), on the project financing for the expansion of the Takoradi 2 power plant in Ghana.
The first independent power project in Ghana, and the first to use project financing, Takoradi 2 is owned by Takoradi International Company, a joint venture between the Abu Dhabi National Energy Company PJSC (TAQA) and Ghana’s main generator and supplier of electricity, the Volta River Authority. The project involves the conversion of a simple cycle gas-fired plant into a combined cycle power plant, increasing its capacity by approximately 50% without requiring any additional combustion fuel and consequently without producing any additional carbon dioxide emissions. Such increase in capacity at the plant, which upon completion will account for approximately 15% of Ghana’s installed capacity, is considered vital to assist Ghana in achieving its economic growth targets.
Paris-based Projects partner Tim Scales led the transaction, supported by senior associates Lachlan Poustie and Andrew McLean. Tim comments: “We are delighted to have been involved in this ground-breaking financing which we hope will pave the way for further opportunities for independent power and other infrastructure projects in Ghana”.
Allen & Overy’s Africa Group comprises over 100 lawyers worldwide, who advise international organisations, investors, banks and African corporations on finance, debt capital markets, corporate, litigation and arbitration matters throughout the African continent.
