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Osagyefo Barge to generate power in
three months
Accra, July 27, Ghanadot/GNA - The 125 megawatts Osagyefo
Barge is to be converted into a combined cycle power plant
and made to generate power in the next three months
following a power purchase agreement signed in Accra on
Friday between the government and a US-based Energy Company.
Balkan Energy Company (BEC), which signed the 20-year
contract agreement with the Government, is expected to
equip, refurbish and commission the barge as well as its
associated facilities within the 90-day period at a cost of
40 million dollars.
The conversion into a combined cycle power plant would make
the barge generate an extra 60 megawatts within nine months
after the effective date of the agreement at a cost of 100
million dollars.
This would increase the capacity of the barge to 185
megawatts.
Mr. Joseph Kofi Adda, Minister of Energy and Mr Phillip
David Elder, Chief Executive Officer of Balkan, signed the
agreement which gives Balkan the right to start running the
barge with diesel and later with gas from the West African
Gas Pipe Line.
He explained that the agreement would be reviewed every five
years and that Balkan would make a yearly lease payment of
10 million dollars to government from the beginning of the
sixth year to the 20th.
"This underscores government's commitment to see the power
problem solved and allow normal operations of business in
the country," the Minister said.
Subject to concluded tooling fee and supply agreements with
government and gas suppliers, Balkan would within three
years invest in infrastructure to ensure that the gas was
supplied through the West African Gas Pipeline, Tano Basin
or other sources.
In addition, it would invest and bring two more combined
cycle barge-mounted systems of 185MW each within three years
of executing the agreement and increase the generation
capacity at Effasu where the Barge is stationed, to
approximately 555MW.
Mr Elder expressed his company's delight to bring private
investment into Ghana not only for the short-term but also
the long-term power need of the country.
"With the support of government we will work to expand the
facility and make it more efficient," he said.
The Osagyefo Barge has never been operated due to
non-availability of fuel. The reason being that the Tano
Fields, originally projected as source of fuel supply for
the barge, is yet to be developed and plans to use
alternative sources seem to have delayed.
When government brought it from Italy, the barge was moored
at the Naval Base in Sekondi in October 2002. Later on March
7 2005, it moved to its present permanent site at
Effasu-Mangyea.
GNA
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