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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.