Private power project ready to take off.

Front April 19/2008

Story: Nehemiah Owusu Achiaw & Charles Benoni Okine, Kpone

THE resolve by a private joint venture company to contribute additional power to augment the country’s energy generating capacity went a step further yesterday, when the sod was cut at Kpone near Tema for commencement of work on a power generating plant.
The 560 megawatt, gas-steamed combined cycle power generation plant, being developed by Sunon Asogli Power (Ghana) Limited, is a joint venture between Shenzhen Energy Group Company Limited of China, Strategic African Securities, owned by Togbui Afede XIV, Paramount Chief of the Asogli Traditional Area and the China-Africa Development Fund Company Limited.
It is the first privately owned power plant in the country and is expected to boost the energy needs of the country to avert any future crisis as was experienced last year as a result of the low level of water in the Volta Lake.
The first phase of the project, which has been scheduled to be completed by the end of the year, is expected to generate 200 megawatts of power while the second phase, which commences immediately after, will produce 360 megawatts and is expected to be completed by next year.
The project, which will offer direct employment opportunities to about 1,000 people, suffered a major setback last year, when the initial piece of land meant to house it was claimed by the Volta Aluminium Company (VALCO) Limited, a matter which eventually landed in court.
A new parcel of land was, however, secured for the project to kick off.
The President — who was there with his vice, Alhaji Aliu Mahama, and other senior government officials — praised the managers of the plant, Sunon Asogli Power (Ghana) Limited for their foresight.
Addressing the sod-cutting ceremony, attended by a large number of people from Kpone, Tema and the Asogli State, President Kufuor recalled the serious energy crisis that confronted the country as a result of the reduction of the water level of the Akosombo Dam, the main source of the country’s energy.
He said as part of the policy intervention to solve the energy crisis, the government initiated short, medium and long-term measures towards the attainment of energy sufficiency for the country.
President Kufuor said as part of the measures, the government sought to encourage private participation in the energy sector, noting that the Sunon Asogli Power Generation Plant project, spearheaded by Togbe Afede, was an example of private sector involvement in energy delivery.
He commended Togbe Afede for his initiative and said his example was worthy of emulation by others.
He reaffirmed the government’s support for the project and expressed the hope that the first phase of the project would be completed by the end of the year.
President Kufuor expressed the hope that more investors would be attracted to the energy sector.
The Chairman of Shenzhen Energy Group Company Limited, Mr Gao Zimin, said the project was a demonstration of the increasing trade and economic relations between Ghana and China.
Togbe Afede said the project would contribute to making Ghana a net exporter of energy.
Nii Tetteh Otu II, Kpone Mantse and President of the Greater Accra Regional House of Chiefs, called on the Environmental Protection Agency (EPA) to ensure that the operations of the company did not degrade or affect the community in any way.
“We have a small river near us that serves as a major source of livelihood for the people and we will not want it polluted with any form of waste,” he stated.
He expressed delight at the project and pledged the commitment of the people to live in harmony to ensure that the project served the interest of the entire nation.
In a related development, the Vice-President said the coming into force of the project was a manifestation of the government’s resolve to allow the private sector into the energy generation process in the country.
Responding to a toast from the Shenzhen Energy Group at a welcoming dinner for the Chinese group, Alhaji Mahama described the project as a mark to further strengthen the existing cordial bilateral relations between the two countries.
He said the commitment of China towards the economic development of the country was manifest in its support for Ghana in many areas, adding, "During our energy crisis China quickly rallied to the country's support by providing funds for the construction of the Bui dam and city."
The President of the China-Africa Development Fund, Mr Chi Jianxin, expressed delight at the project and said the fund felt committed to support Ghana to come out of its energy crisis.