The Amandi Energy Consortium, which counts a number of private capital investors amongst its backers, announced that it has reached financial close and begun construction of the $552 million Amandi Energy Power Plant in Aboadze, Ghana. The plant is expected to start generating power by April 2019.
Of the $552 million required, $134 million in being provided as equity by a group made up of Denham Capital-backed Endeavor Energy, Harith General Partners-backed Aldwych International as well as Harith’s Pan African Infrastructure Development Fund 2, ARM-Harith Infrastructure Fund and the Amandi Founder Group. The debt financing component of the package, which is being provided by a mix of development finance institutions and commercial banks, includes a $250 million loan from OPIC, an $83 million loan from CDC as well as commitments from Nedbank and Rand Merchant Bank.
OPIC’s commitment marks the largest investment in West Africa supported by the U.S. Power Africa program which seeks to support projects throughout Africa that build the capacity needed to meet the continent’s critical need for electricity.
Initially, it’s expected that the plant will be fueled by light crude oil before switching to indigenous gas once Ghana’s offshore Sankofa natural gas field is brought online. Once generating, the plant will produce more than 1,600 gigawatt hours per year providing more than one million households in Ghana with electricity. The Electricity Company of Ghana has entered into a 25-year power purchase agreement to buy power from the 200MW combined cycled dual-power project once it starts generating in early 2019.
Amandi Energy’s financial adviser for the transaction was Fieldstone Africa, Trinity International served as international legal adviser and Senet Corporate Solicitors served as Ghanaian legal adviser. Clifford Chance acted as international legal adviser to the lenders, and ENSafrica, Ghana served as Ghanaian legal adviser. Norton Rose Fulbright acted as international legal adviser to Endeavor. Mott MacDonald served as lenders’ technical advisor and Parsons Brinckerhoff Power acted as owners’ engineer.