In the recent past, Ghana, which used to enjoy a relatively stable supply of power mainly from the Akosombo hydro-electric power plant, has faced some challenges as the demand for the supply of power has continued to grow. As part of the measures to address occasional power crises, the Government initiated a number of supplementary power generation projects, including the Kpone Thermal Power Project (KTPP) and the Tema Thermal 2 Power Project (TT2PP).
In this regard, the Government procured two Gas turbine generators with a total capacity of 223.4 MW and auxiliaries for the construction of the KTPP. The Government further provided financing for the TT2PP which comprises Gas turbine generators with a total capacity of 49.5 MW. Two Engineering, Procurement and Construction (EPC) Contracts were signed to build these two power plants.
These two projects were due for completion in 2009. However, three years down the line, work on the completion and commissioning of the KPTT stalled, while work towards the completion of the TT2PP was virtually completed.
The aim of this assignment was:
-
To assess the status of completion of the KTPP and TT2PP projects
-
To make recommendations towards ensuring the completion of the projects and the subsequent operation of the plants in a cost-effective manner.
Technical and Financial Assessment
Provided Services
Description of Provided Services within the Assignment:
-
Roles and legal obligations of the Government of Ghana and its contractual partners clarified
-
Outstanding contractual commitments and obligations of the KTPP and TT2PP assessed
-
Breaches and problems associated with the completion of the KTPP and TT2PP contracts identified
-
Recommendations made on the operational state of the Gas turbines particularly with respect to storage
-
State of physical execution of the EPC contracts and procurement of associated equipment assessed
-
Comparative project cost benchmarks (against the background of similar recent projects) provided
-
Potential cost reductions identified and commented upon
-
Options for financing the completion of the project assessed
-
Options identified and recommendations made on the most beneficial ownership structure and effective management/operational arrangements for the project upon completion
-
Issues that would impact either positively or negatively on the implementation of the project identified and commented upon.
Project Location
Client
Approx. Contract Value
Mission
Start Date
Completion Date
Associated Consultants
: Accra
: Ghana Energy Development and Access ProjectMinistry of Energy
: €70,767
: Technical and Financial Assessment of two Newly-Built Power Plants in Ghana
: January 2011
: April 2011
: PPA Energy
