transmission lines

In West Africa, the Ghanaian government has issued state utility Electricity Company of Ghana (ECG) with a $42.90 million loan facility in support of a project to reinforce and extend the electricity distribution system.

The loan offer follows an agreement reached between the government and the African Development Fund for an amount of $42.90 million and a grant of $29.79 million.

Subsequently, there is an on-lending agreement between government and the ECG for the cedi equivalent of (Units of Account 28,600,00) $42.90 million to support the expansion drive of ECG, GhanaWeb reported on Wednesday.

John Jinapor, Deputy Minister for Power, said: “The project would reinforce and extend ECG’s distribution system and help Government to achieve its objectives of ensuring availability of reliable and universal access to energy services for domestic use and for export by 2020.”

Benefits of ECG project

The key objective of the ECG project is to extend reliable and secure power access to the Ghanaian population by refurbishing ECG’s distribution system in addition to installing off-grid power systems in remote locations.

The benefits of the project also extend to curbing the number of power outages, improving overall voltage level from distribution to final user, and reducing the distribution system losses.

Ghanaian electricity access

The West African country has recently endured a gas supply cut from Nigeria due to an outstanding debt of $120 million where it was reported that the cut would reduce power generation by 600MW.

However, despite this Ghanaian President John Mahama has announced that Ghana’s electricity access will increase to 80% following the government completion of several electrification projects.

The ECG project falls in line with Mahama’s goal of increasing electricity access.