Takoradi Expansion Phase I

The government of Ghana and the Volta River Authority (VRA) have signed an agreement with CMS Energy Corp. of the USA for the development of a 110 MW power plant. The $60m project is the first phase of a 330 MW expansion of the existing Takoradi thermal power plant located near Aboadze.

The project will be developed on a build-own-operate basis by CMS Energy`s independent power production unit, CMS Generation Co. The project will be the anchor customer for the planned West African Gas Pipeline between Côte d`Ivoire and Nigeria.

Construction of the simple cycle plant, incorporating an Alstom-supplied Frame 9E turbine-generator, will start immediately. CMS will operate the facility and sell output to the VRA under a long-term power purchase agreement. The project will provide much-needed power for Ghana.

CMS Energy will hold a 90 per cent ownership in the generating unit while the VRA will hold the remaining ten per cent. The VRA has the option to increase its ownership to a maximum of 50 per cent.

The existing Takoradi power plant operates on light crude oil but will be converted to natural gas. Natural gas supplies for the project will come from both Nigeria and Côte d`Ivoire.