580 communities to get electricity soon

Accra, Nov. 22, GNA 96 About 500,000 people in 580 deprived communities in the country would be connected to the National Electricity Grid with a China concessionary loan facility with a grant element of 39.1 per cent.

The loan, which has an interest rate of 2.13 per cent; a grace period of four years; 11 years repayment period and 15 years maturity date, would enable China International Water and Electric Corporation to execute the contract under the Government's Self-Help Electrification Programme (SHEP).


Signing the contract agreement in Accra with the Corporation, Mr Joseph Adda Minister of Energy, gave the total cost of the Project as 90 million euros.


The Government of Ghana is to contribute the remaining 10 per cent of the contract sum.


Mr Adda said given the current spate of growth in the demand for electricity, the project was timely and would help tremendously to reach those un-reached communities to enable them to fight poverty. He said the Corporation's track record was good and work would be done, adding that the Government was putting in short term measures to address the current energy problem but noted that it was also important for consumers of power to also start thinking to learn how to use energy wisely for the benefit of all.

Some of the measures include the installation of several thermal power plants projects especially in Tema to generate at least 1,000 megawatts of power next year.


Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, who signed the contract on behalf of the Government, said under the SHEP programme a beneficiary community must be within 20 kilometre-radius of an existing 11/33 Kilovolts network.


SHEP which begun 16 years ago formed part of the National Electrification Scheme (NES) which have so far connected about 4,000 communities Access to electricity in Ghana had grown from about 15 per cent of the population at the inception of the national electrification programme to the current level of 55 per cent.


Mr Wang, Vice President of the China International Water and Electric Corporation, who signed on behalf of the Corporation, said the concessionary facility was premised on Ghana's efforts towards reducing poverty and the fact that the country was doing well in its economic advancements.