CENPOWER encourages Ghanaians to pool resources for energy ventures

Ghana hosted a country focus discussion at the 2015 Africa Energy Forum in Dubai, which deliberated on the role of Independent Power Producers (IPPs) to deliver on electricity generation.

The panel which included Power Minister, Dr. Kwabena Donkor and Chief CEO of Ghana Grid Company (GRIDCo), William Amuna, looked at investment opportunities in the country’s plans to increase energy generation and distribution.

A major highlight was the call for local ventures to position themselves to develop well structured and bankable projects to attract foreign partners as IPPs.

Cenpower Generation Company Limited, Ghana’s leading private sector integrated power company, shared its experience as the first IPP to operate in the country.

Board Chairman, Nana Samuel Brew-Butler, who was also on the panel, noted that Ghanaians can pool their resources together to start ventures that attract foreign investments.

“Cenpower is a success story and this is an initiative by Ghanaians; it’s not as if some people brought the project into Ghana, we started it and rather attracted others to us because for us,” he said.

Cenpower managed to raise a total project cost of $900million to venture into the power producing business in Ghana.

According to Nana Brew-Butler, being able to be creative in packaging a project will make it bankable and “once you’ve done it once, then have credibility, so you knock on doors and they’ll open it for you”.

The African Legal Support Facility, hosted by the African Development bank (AfDB) has been supporting African governments to negotiate complex commercial contracts in the energy sector.

CEO and Director of the Facility, Stephen Karangizi, has observed that finance is no longer a challenge in power infrastructure projects.

“Years ago the challenge was more of lack of financing, however, today there is availability of financing for infrastructure projects. But beyond that financing, we have other challenges and opportunities that are emerging everyday; the biggest challenge is finding high quality projects that both fit the strategic direction of the African countries and investors expectations at the same time,” he said.

Mr. Karangizi says governments and investors would have to better understand each other in contract negotiations to address Africa’s power needs.

Story by Kofi Adu Domfeh/ in Dubai, UAE