ContourGlobal's Tri-Fuel Power Project in Togo Wins 'African Power Deal of the Year 2009' Award

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Researched by Industrial Info Resources (Sugar Land, Texas)--Power projects developer ContourGlobal (New York) recently announced that its 100-megawatt (MW) tri-fuel power plant at Lomé in the western African nation of Togo has received the "African Power Deal of the Year 2009" award. The power plant, which is under construction, has received the award from Project Finance Magazine, Euromoney's international infrastructure and finance publication.

The project is expected to be ready for commercial operations by April this year, four months ahead of the planned schedule. It has many firsts to its credit: it is the first independent power project in the country, the first power plant to be developed in Togo under the project financing model, and the first power project to be constructed as per the environmental guidelines and standards set by the World Bank (Washington, D.C.).

The investment on this facility is also considered to be the biggest in the history of this sub-Saharan country. Overseas Private Investment Corporation (OPIC) (Washington, D.C.) has provided financial assistance to the project. OPIC assists the U.S.-based companies in identifying investment opportunities overseas and managing risks, and helps in infrastructure development in emerging economies.

In December 2008, ContourGlobal Togo S.A., a fully owned subsidiary of ContourGlobal, signed a $146 million financing agreement with OPIC for the Lomé project. In October last year, OPIC and ContourGlobal finalized a partnership agreement to develop tri-generation and quad-generation technology-based power projects in emerging economies.

The 100-MW power generating facility will work on triple fuel, which will provide flexibility to switch between three fuels: diesel, natural gas and heavy-fuel oil. The primary fuel source will be natural gas. However, in the absence of a sustained supply of natural gas, the power plant can continue operations with the two secondary fuels. On commencing operations, the amount of electricity generated at this plant will exceed the country's current total power production.

The project is expected to provide sustainable and low-cost power. Togo is a small country is western Africa, sharing its borders with Burkina Faso, Benin and Ghana. The country has a population of about 6.7 million, with about 65% living in rural areas. About 50% of the country's population lives below the poverty line, and less than 15% have access to electricity.

Togo gained independence from France in 1960. However, political unrest, an unstable investment climate, and rampant strikes by public and private companies have thwarted the federal government's efforts to develop the nation's infrastructure and economy with assistance from the International Monetary Fund (IMF) (Washington, D.C) and World Bank.

The country's economy is predominantly agrarian, with cocoa, cotton and coffee accounting for 40% of export revenues. Togo is now focusing on developing basic infrastructure and amenities with assistance from several international companies, including ContourGlobal.

Established in 2005, ContourGlobal works with multinational companies, federal agencies and governments of developing economies to build and operate power projects. The company has about 1,300 MW of power projects in various stages of construction and operations in Brazil, the U.S., Ukraine, the European Union and Columbia. ContourGlobal has a strong presence in Africa, with projects under way in Nigeria, Togo, Rwanda and Kenya.

In October last year, the firm completed initial renovation and modernization of the Kramatorsk combined heat and power (CHP) plant in Ukraine. The company has also completed a CHP project for Coca Cola Hellenic Bottling Company S.A. (Athens, Greece) at Ploiesti in Romania. A similar project will be commissioned at Timisoara this year. In the next couple of years, ContourGlobal plans to install 10,000 MW of power generating capacity worldwide.

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