Ghana, Korea sign $60 million power agreement

A 60 million dollar loan for the construction of a 185 kilometre -330kilovolts power transmission lines has been signed between the governments of Ghana and Korea.

The government, through the Ghana-Grid Company signed with a consortium of Companies from Korea to undertake the project which stretches from Prestea in the Western Region to Kumasi in the Ashanti Region.

Under the agreement, GS engineering and construction and Samsung C and T, both Korean Companies, would undertake the project being financed through a concessional loan facility from the Koran Export-Import Bank while GRIDCO manages implementation until its completion by the first quarter of 2017.

Minister of Power, Dr. Kwabena Donkor who initiated for Ghana, commended the Korean government for the support it has given to the Power Sector.

He said Ghanaians appreciate the numerous service the Korean government through many of its Companies have provided to facilitate accelerated development in the power sector.

Dr. Donkor said, the project of the transmission lines has come at a time Ghana would want to come out of the challenging power crisis, and emerge as a major energy power-house in the sub-region in the immediate future.

Mr. William Amuna, Chief Executive of GRIDCO, said the project is a brainchild of the President who then as a vice, travelled to Korea to solicit for the support.

He said the project, when completed, would be of immense benefit to the country since the transmission lines would transport power from the south to the northern part of the country.

Mr. Amuna said the Prestea-Kumasi power enhancement project, was a component of the 330KV transmission network which originates from the Aboabdze Thermal Power Plant in the South, to Bolgatanga in the North.

He said the transmission lines, starting from Aboadze to Prestea, are to be connected to Kumasi, with the final lap being the Kumasi-Kintampo-Tamale-Bolgatanga stretch.

Mr. Amuna said GRIDCO is also looking at the possibility of connecting the lines to that of Accra, so that it could create triangular transmission lines across the country to enhance electricity distribution.

He said the project would also help to reduce transmission losses from its current 4.5 per cent position to the three per cent mark, adding that it would enhance efficient delivery and improve penetration levels to the hinterlands.

Ms. Myounsun Kim, Counsellor at the Korean Embassy in Accra, said the Korean Exim Bank has been providing support for a number of projects since 1990.

She said it was her hope that, Ghana would take advantage of a 200 million-dollar concessional loan being offered by the bank, for its accelerated development projects.