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Group Five Bags $374m Energy Deal In Ghana

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IMAGE: construction firm, Group Five Office »


JSE-listed construction firm, Group Five, late on Thursday said Ghana’s Cenpower Generation Company had awarded it a R4 billion ($374 million) contract for the design and construction of a 350 megawatt gas and oil-fired power plant in Kpone municipality in Ghana.

Group Five said the contract duration is three years from award to commercial operation and the project is subject to certain conditions. The contract must now continue to commercial and financial close.

“Only once both commercial and financial close have been reached will the group receive a Notice-to-Proceed instruction which will trigger the commencement of contract execution,” Group Five said.

Rand Merchant Bank, a division of South Africa’s third biggest bank, FirstRand Bank, is the coordinating lead arranger for the full commercial debt package, with support from the Export Credit Insurance Corporation of South Africa.

Global technology leaders, including General Electric (GE) and Siemens, will supply the power generation equipment which is about 50 percent of the contract value.

Group Five has successfully completed more than 10 EPC power contracts valued at R6 billion ($561 million) over the last seven years. The Kpone IPP is similar to a number of these completed EPC power contracts.

The group has also operated in Ghana for the last 15 years.

Article Credit: Ventures-africa

Updated 6 Years ago

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Tags:     Group Five     Rand Merchant Bank     FirstRand Bank     General Electric