Money

23 March 2012 – The International Development Association and Ghana have agreed on US$25.9 million to finance a 225 kV power line and associated substations in Ghana and Burkina Faso.

This forms part of the first phase of a World Bank backed inter-zonal transmission hub project that is expected to facilitate the decision of Economic Community of West African States (ECOWAS) to develop and put in place the West Africa Power Pool (WAPP).
 
Based on an ECOWAS energy strategy the first phase of the project under the WAPP is designed to curb imbalances between domestic energy resources and the needs of member states with specific emphasis on Burkina Faso. The proposed transmission line will significantly reduce the cost of electricity supply in Burkina Faso and facilitate future unconstrained electricity exchanges across WAPP zones, as well as provide financial benefits to Ghana due to increased revenue from power sales.
 
The loan facility, which has a grace period of 10 years, maturity period of 35 years and repayment period of 25 years, attracts a commitment charge of a maximum of 0.5% a year on withdrawn balance and a service charge of 0.75% a year on interest.
 
It will be applied to areas including the 225 kV link between Bolgatanga and Ouagadougou, reinforcement of transmission grid in the northern part of Ghana, electrification of rural localities along the right of way of the project, supervision of construction works, capacity building and institutional support to the Ghana Grid Company and Sonabel, the latter being the main power distributor in Burkina Faso.

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