The Ghanaian government has signed a $60 million loan agreement with the Korean government for the construction of a 185-kilometre (114 miles) power transmission line.
The 330kV transmission line will run from Prestea in the Western Region to Kumasi in the Ashanti Region in a bid to improve supply from the south of the country to the north.
The government signed the agreement with a consortium of Korean companies through the West African country’s state electricity transmission company the Ghana Grid Company (GRIDCo), which will manage the implementation process until it is completed in Q1 of 2017, SpyGhana reported on Sunday.
The project will be under the responsibility of Korean companies GS Engineering and Construction and Samsung C&T.
The transmission project will be financed through a concessional loan facility from the Korean Export-Import Bank, local media reported.
Minister of Power Dr Kwabena Donkor said the project has come at the right time, as the country has been facing many hurdles within the power sector and the country still strives “to emerge as a major energy powerhouse in the sub-region in the near future”.
Transmission networks strengthen power supply
William Amuna, chief executive of GRIDCo, was optimistic about the benefits that the transmission project would bring to the country as the power lines would provide power from the southern part of the country through to the north, according to local media reports.
Amuna said the Prestea-Kumasi power enhancement project was part of the 330KV transmission project, which begins at the Aboabdze Thermal Power Plant in the South to Bolgatanga in the North.
Amuna added that GRIDCo is considering linking power lines to Accra to establish a triangular transmission line connection across the country to support and strengten electricity supply.
In addition, Amuna said that the project will contribute towards reducing “transmission losses from the current 4.5% position to 3%”, adding that it would enhance delivery and improve penetration levels to the hinterlands.