Bridge Power nears close on multi-sourced debt package
Early Power – a joint venture between Endeavor Energy, Sage Trading Group, and General Electric (GE) – is imminently expected to reach financial close on the $623 million first phase of its 400MW combined-cycle gas turbine (CCGT) Bridge Power Project in Tema, Ghana.
The project financing is a 12-year $435.8 million limited recourse deal split between a commercial bank loan – led by Standard Chartered and signed earlier this year – a direct loan from Hungary Exim and a direct lending facility provided by the Emerging Africa Infrastructure Fund (EAIF), Development Bank of Southern Africa and CDC Group. Drawdowns are expected to begin by year-end. The commercial tranche has 80% all-risk cover from USAID and GuarantCo.
The new facility will replace a limited recourse vendor financing of $264 million provided in 2018 to fund initial construction by Mytilineos (parent company of the EPC contractor METKA) and a $50 million GuarantCo guarantee.
Norton Rose Fulbright and ENS Africa are providing lender counsel, while Clifford Chance is acting for the sponsors. Mott MacDonald is technical adviser, BDO is tax adviser, and INDECS is managing insurance.
The Bridge Project will use LPG at first, until natural gas is available, at which point the LPG infrastructure will be used to create eco-friendly LPG for Ghana. The first phase includes a 149MW open-cycle turbine, as well as a 57MW steam turbine. The scheme benefits from a 25-year PPA (inclusive of five-year option) with the Electricity Corporation of Ghana (ECG).
