US concessional loan before parliament

Accra (Greater Accra) 9th July '99 - A concessional loan agreement of 21.0 million dollars between the government and the US Export Import Bank (Ex-Im Bank) for the electrification of about 1,400 communities under the Self- Help Electrification Project (Three) (SHEP 3) was laid before parliament on Thursday.

The loan is to be used for the procurement of off-shore electrical materials and equipment for those communities that qualify under SHEP 3 whose implementation began in 1996. It will end in the year 2000.

The loan is made of a credit of 13 million dollars and a grant of about eight million dollars.

A ministry of Mines and Energy memorandum accompanying the agreement said SHEP is a complementary activity of the National Electrification Scheme (NES) to provide electricity to all communities over a 30-year period.

It is estimated that 120 million dollars would be required to procure these materials. So far the ministry has secured 82.36 million dollars from other donors.

The memorandum said implementation of the NES has resulted in the provision of electricity to all 110 district capitals, electrification of towns enroute to district capitals is also on course with funds from donors.

Under the SHEP, communities within 20 kilometres of existing 333kv/11kv network are to be connected to the national grid provided they can purchase and erect their own low voltage distribution poles.

The memo said most of the 1,400 communities to benefit have erected their poles since 1993. So far, 350 communities have been connected to the national grid under SHEP One and Two between 1993 and 1995.