Ghana Acquires Electrification Loan From China

Accra, Ghana (PANA) - Ghana signed a 29.5 million- dollar loan agreement Thursday with a Chinese company to help it extend hydroelectric power to settler communities affected by the creation of the Akosombo and Kpong dams.

The minister of mines and energy John Abu signed on behalf of the government while Zhao Zhucong, executive director, vice-president and senior engineer of the International Water and Electric Corporation signed on behalf of his company.

Abu said the beneficiary settler towns created by the Volta River Authority are located in the Brong Ahafo, Eastern, Northern and Volta Regions, where about 100,000 people reside.

The loan is a concessionary credit provided by the Chinese government through the China Exim Bank and represents 90 percent of the total cost of the programme.

The remaining 10 percent will be borne by the Ghana government. The actual cost of the electrification programme is 32.8 million dollars. The loan has a repayment period of 10 years with a 2 percent interest rate and a grace period of three years for the principal and interest.

So far, 171 townships within the Volta Lake resettlement area have been identified for immediate attention under the programme, which will be carried out in two phases.

Zhucong said the mutual co-operation, which had been shown by the government and the various sectors involved during the drawing of the project showed a good beginning.