China plans power plant in Ghana

SHANGHAI – China’s Shenzhen Energy Investment Co Ltd said yesterday it plans to team up with an Africa development fund set up by the Chinese government to build a 200-megawatt gas-fired plant in Ghana.

The firm, based in the southern Chinese town of Shenzhen, next to Hong Kong, plans to form a venture in Ghana with the China-Africa Development Fund to develop the project, estimated to cost 1,03 billion yuan. China in June launched the fund with initial capital of US$1 billion to help finance domestic firms’ investments in Africa, part of Beijing’s pledge to double its aid to the continent.It is the first phase of a US$5 billion fund promised by President Hu Jintao at a summit with African nations in Beijing last November.The move comes amid international criticism that Chinese aid is mainly aimed at helping Chinese companies gain access to scarce resources needed to fuel China’s booming economic growth, while most Western oil firms have already set up operations in Africa.Shenzhen Energy would have a 60 per cent stake in the proposed venture, while China-Africa Development would hold the remaining 40 per cent, the statement said, adding that the plan required approvals from shareholders and regulators.The project, which would be installed with two generators currently used at power plants owned by the listed firm and its parent, would be commercially viable, the statement said.Ghana is short of electricity and the country’s power demand is growing at six per cent a year, it said.The 200-mw power plant will be the first phase of a 560-mw project planned in the African country, it added.Shenzhen Energy also said it planned to spend 1,62 billion yuan to buy 270 million new shares sold by Chinese brokerage Great Wall Securities through a private placement.Nampa-ReutersChina in June launched the fund with initial capital of US$1 billion to help finance domestic firms’ investments in Africa, part of Beijing’s pledge to double its aid to the continent.It is the first phase of a US$5 billion fund promised by President Hu Jintao at a summit with African nations in Beijing last November.The move comes amid international criticism that Chinese aid is mainly aimed at helping Chinese companies gain access to scarce resources needed to fuel China’s booming economic growth, while most Western oil firms have already set up operations in Africa.Shenzhen Energy would have a 60 per cent stake in the proposed venture, while China-Africa Development would hold the remaining 40 per cent, the statement said, adding that the plan required approvals from shareholders and regulators.The project, which would be installed with two generators currently used at power plants owned by the listed firm and its parent, would be commercially viable, the statement said.Ghana is short of electricity and the country’s power demand is growing at six per cent a year, it said.The 200-mw power plant will be the first phase of a 560-mw project planned in the African country, it added.Shenzhen Energy also said it planned to spend 1,62 billion yuan to buy 270 million new shares sold by Chinese brokerage Great Wall Securities through a private placement.Nampa-Reuters