Business News of Thursday, 6 December 2018
Cenpower Generation Company Limited has announced the termination of its Engineering, Procurement and Construction (EPC) contract with Group Five Power International (Pty) Limited (Group Five) for the construction of the 350 megawatt Combined Cycle Gas Turbine (CCGT) power plant, the Kpone Independent Power Project (KIPP) in the Tema industrial zone.
The project has suffered more than a year’s delay and Cenpower recently called on the bonds put in place as security by Group Five for Delay Damages due to the inability of Group Five to complete the project by the scheduled completion date of September 13, 2017.
Chief Executive Officer (CEO) of Cenpower, Theophilus Sackey, said Group Five had been allowed time to remedy the failure to timely completes the project but as a consequence of the continued delays it was necessary to terminate the EPC Contract. “Given the continued delays to completion, it has been concluded that it is in the best interests of the project and its stakeholders to terminate the EPC contract,” Mr Sackey stated.
He noted that although the Delay Damages recently received by Cenpower do not come close to the losses suffered by the Company, Cenpower and its shareholders remain committed to ensuring that the project is completed and commercially operational as soon as possible.
Currently, construction of the plant is complete but testing and commissioning work still remain to be performed. A technical team from the shareholder group has been assembled to complete the outstanding commissioning works as soon as possible.
The team will work with all the current Ghanaian workers on the project thereby ensuring that there are no jobs losses as a result of the termination.
Mr Sackey further stated – the delay has been a temporary set-back. All the project investors remain unwavering in their commitment to the project and look forward to contributing to Ghana’s continued development through this groundbreaking project.