Sojitz Completes Construction and Begins Commercial Operation of Desalination Plant in Republic of Ghana
- Plant Contributes to Stable Supply of Safe Water for 500,000 People -
Apr. 24, 2015
Befesa Desalination Developments Ghana Ltd. (BDDG), a joint venture established by Sojitz Corporation and Abengoa Water, began commercial operation of a desalination plant located in the Republic of Ghana in February of this year. Ghana President John Dramani Mahama attended a completion ceremony held on April 17.
This is the first desalination project in Sub-Saharan Africa and the first time that a Japanese company has invested in a desalination project in Africa, making Sojitz a pioneer for development of infrastructure projects in Sub-Saharan Africa by Japanese companies. Since the project has a high degree of public utility, a project finance scheme was used to raise funds with political risk insurance provided by the Multilateral Investment Guarantee Agency (a multinational insurance body that is a member of the World Bank Group). With the start of commercial operation, the plant can produce a maximum of 60,000 tons of water per day, making it possible to supply drinking water for approximately 500,000 people. The desalinated water will be sold to Ghana Water Company Limited under a 25-year long-term Water Purchase Agreement.
Sojitz will be responsible for business management, dispatching corporate officers and the Financial Manager. Abengoa Water, Spain’s leading water business company, will use its experience building and operating desalination plants with a total global production capacity in excess of 1 million tons per day to oversee operation of the plant.
By carrying out this project, Sojitz is contributing to the long-term and stable supply of safe water and helping to eliminate the shortage of water in Ghana. In addition, based on the accumulated desalination project expertise from this project, Sojitz will pursue new projects in emerging countries that are facing severe water shortages.
【Map of Republic of Ghana, Accra】 【Desalination plant】
Befesa Desalination Developments Ghana Ltd
|Location||Accra, Republic of Ghana|
Abengoa Water 51%
|Total project cost||US$126 million|
|Water Purchase Agreement||A 25-year, long-term water sale contract was entered into with Ghana Water Company Limited|
|Plant overview||Water production capacity: Maximum of 60,000 tons per day (equal to drinking water for approximately 500,000 people)
Facilities: Reverse osmosis membranes (RO membranes)
Business scheme: BOOT scheme (Sojitz became the project implementer, built and will own and operate the plant, and after 25 years, will make a gratis transfer of the plant to Ghana Water Company Limited)