CDB lends $580 million to Phases 1 and 2 of 560 MW Sunon Asogli Power Plant Project (Linked to Record ID#30146 and ID#1866)

📋 Staff Comments

1. Shenzhen Energy Group Company Ltd holds a 60% ownership stake and CADF holds a 40% ownership stake in Sunon Asogli Power (Ghana) Limited [深能安所固电力(加纳)有限公司].
2. The Chinese project title is 加纳安所固燃气电厂项目 or 加纳燃气循环发电项目.
3. For most, and perhaps all, of the CDB loans, Shenzhen Energy Group Company Ltd issued corporate guarantees worth 60% of the face values of the loans (i.e. corporate guarantees that were proportional to Shenzhen Energy Group Company Ltd’s 60% ownership stake in Sunon Asogli Power (Ghana) Limited.
4. Various sources refer to a $100 million CDB loan in 2008 with a 10-year maturity (backed by a partial repayment guarantee from Shenzhen Energy Group Company Ltd), a $284,083,200 CDB loan in 2015 [backed by a partial repayment guarantee from Shenzhen Energy Group Company Ltd and collateralized against Shenzhen Energy Group Company Ltd’s 60% equity stake in Sunon Asogli Power (Ghana) Limited, and a $50 million CDB working capital loan in 2017 [backed by a partial repayment guarantee from Shenzhen Energy Group Company Ltd and collateralized against Shenzhen Energy Group Company Ltd’s 60% equity stake in Sunon Asogli Power (Ghana) Limited]. CDB’s 2020 annual report refers to $358 million of lending for Phase 2 of the 560MW Sunon Asogli Power Plant Project.
5. Phase 2 of the 560MW Sunon Asogli Power Plant Project is also known as the Kpone Thermal Power Station II Project.
6. China-Africa Development Fund made a $79.89 million equity contribution to the project.
7. Build-up of excess capacity charges guaranteed by the Government of Ghana lead to enormous fiscal challenges and threaten the viability of the country’s power sector as a whole. The Public Utilities Regulatory Commission (PURC), which oversees tariff-setting methodology, excludes capacity charges and financing costs from its tariff calculations, adding to the shortfall. In 2018, excess generation capacity contracted under take-or-pay power purchase agreements (PPAs) cost the Government of Ghana $320 million in capacity charges, estimated to increase to $620 million annually with the addition of new plants in 2019. These unused supply charges are one of the most significant sources of financial strain on the country’s power sector. Cumulative net sector debt was $2,748 billion in 2018, with 30% payable to the private sector. This sum is equivalent to 33% of the Government of Ghana’s 2018 tax revenue, highlighting the scale of the financial burden. The Government of Ghana was forced to issue two series of bonds totaling GHS 5.66 billion in 2017 and 2018 to pay 50% of legacy debt owed to several energy sector actors, including various banks, VRA, ECG, and the Northern Electricity Distribution Company (NEDCo). Then, in 2020, the Government of Ghana settled another utility legacy debt — involving Sunon Asogli Power (Ghana) Limited — worth $203 million. According to Sunon Asogli Power (Ghana) Limited, the settlement of the debt helped improve the credit ratings of the various organizations within the energy sector seeking for credit facilities from both domestic and international banks. “It has further reduced the indebtedness of government, Electricity Company of Ghana Limited (ECG), Volta River Authority (VRA), Ghana National Gas Company Limited (GNGC) and Sunon Asogli Power (Ghana) Limited making their books much better. We will continue to collaborate with all the parties within the energy sector and the Government of Ghana in meeting the electric power needs,” Sunon Asogli Power (Ghana) Limited added in a statement

📚 Sources & References

• CDB Annual Report 2020
• China Development Bank Annual Report 2020
• Introducing Sunon-Asogli Power(Gh) Ltd to the WAPP General Assembly
• About Us-Sunon Asogli Power (Ghana) Ltd.
• Power shortage in Africa brings investment opportunities
• Shenzhen Energy's first overseas order is placed in Ghana
• Gas combined cycle power generation project
• 南南合作在行动 投资合作促进非洲可持续发展 中非发展基金
• 从图纸变成现实：加纳电厂诞生记
• 深圳能源集团股份有限公司 关于投资加纳燃机电厂二期 36 万千瓦项目 并提供担保的公告
• Sunon-Asogli Gas Fired Power Plant
• Frank Nimako Akowuah IFLR Profile, $203 million inter-utility legacy debt owed Sunon Asogli Power settled
• Sunon Asogli Thermal Power Station Wikipedia Page
• 中非基金和深能源共同投资的加纳电厂一期工程顺利开工
• 中非·案例方案典范丨中非产能合作样本：中国与加纳合建发电厂
• 深圳能源集团股份有限公司 关于为加纳公司提供担保的公告
• 深圳能源集团股份有限公司 第六届董事会二〇〇八年第一次临时会议公告
• 深圳能源投资股份有限公司关于为控股子公司提供担保的公告
• 贷款余额超过1.57万亿 国开行海外绿色信贷促进多方共赢
• 国开行海外绿色信贷促进多方共赢
• POWER GENERATION CONCEPT PAPER (PROJECT 3)
• Sunon Asogli Power Plant Phase II
• Ghana
• 加纳电 厂 诞 生 记
• Drilling begins for pile foundation of Asogli Power Plant Phase II
• A Case Study of Ghana’s Power Purchase Agreements
• Ding Yanzhang Visits Ghanaian President Nana Akufo-Addo
• Ghana Faces Renewed Threat Of Power Crisis As 560MW Sunon Asogli Power Plant Shuts Down Amid Debt Dispute
• Sunon Asogli’s 560MW power plant restarts operations following government intervention Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.