Ghanaian power company Cenpower Generation has terminated its contract with local construction Group Five to complete the $410m Kpone power station in Tema, Ghana. The termination on Friday is the latest twist in a relationship that turned acrimonious following Cenpower making a $62.7m claim against Group Five’s retention and performance bonds for delays in completion of the 340MW fuel-fired thermal power plant. Group Five said the delays were partly as a result of Cenpower supplying the power plant with “contaminated” fuel. Besides the quality of the fuel, the project was also delayed by problems experienced at the plant’s water treatment facility and issues around steam quality.

The inability of the power grid to receive power during the commissioning phase was also a problem. Group Five also had to contend with a change in design. The plant is fuelled by diesel and crude oil but there were plans to also use natural gas. Cenpower said the plant should be handed over only usi...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.