Despite the existence of Contour Global thermal power plant of 100 MW, Togolese authorities noted that, Togo continues to import 50% of its electricity needs and that they must quickly act if they want to achieve the objectives set in the new national development plan (PND) in terms of securing the supply of quality electrical power at an affordable cost.
"Since the unavailability of affordable electric power is a drag on economic development, the government decided to increase the country's electricity production capacity by developing a new thermal power plant", justifies the minister of energy.
263,000 households targeted
Referring to the head of the ERANOVE Group, the new plant called Kekeli Efficient Power will be at the service of Togo's development and will provide electricity for 263,000 additional households, equivalent to 1.5 million additional inhabitants.
According to the developers, the supply and securing of the electricity supply will be affordable.
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Kekeli Efficient Power will have a capacity of 65 Mw that is 47 Mw of turbine gas and 18 Mw of steam turbine thanks to the combined cycle technology that will produce more electricity without additional gas consumption and limiting CO2 emissions in the air.
"With this new power plant, Togo is writing a new page in its economic history. Apart from the jobs that will be created, it will bring the national electricity production pack to 193 MW to considerably reduce our dependence as far as energy is concerned," reassures Minister Bidamon.
What do we know about the contract signed between Togo and Eranove?
First, the investment will cost 64 billion CFA francs and will be mobilized by Eranove's financial partners including West African Development Bank and Oragroup.
The construction of this new plant will bring Togo's own production capacity to 193 MW against a current national demand of around 200 MW; a reassuring availability that will be complemented by guaranteed supplies from Ghana and Nigeria.
Like Contour Global, the energy produced by Eranove will be sold to CEET.
Nine key points to keep in mind:
1- The concession agreement will be signed for a period of 25 years;
2- No Sovereign Guarantee of Togolese State will be issued as part of the project;
3- The contract as well as all payments are denominated in CFA to avoid currency fluctuations;
4- Togolese State through its dismemberments will participate in 25% of the capital of the company, from its creation, which allows to capture a part of the value created;
5- The concessionaire will make the investment in the framework of the law n ° 2012-001, bearing the code of the investments and an approval will be granted to him for this purpose;
6- The State will guarantee the concessionaire access to the site from the date of signature to enable it to inspect, evaluate and carry out the preliminary studies and necessary for the conclusion of the emphyteutic lease. But all the expenses related to the examinations and investigations necessary for the evaluation of the state and the environmental conditions of the site are the responsibility of the concessionaire;
7- The concessionaire shall pay the State a concession fee, the amount of which is set at one percent (1%) of its annual turnover;
8- The price is structured in two parts: a capacity price to reimburse the investment and a price of variable energy according to the energy actually consumed.
9- The plant will be built in two phases and ERANOVE commits to deliver the open cycle 17 months after the signing date of the concession agreement and the combined cycle 27 months after the signature.