Loan agreement signed for WAPP project

Accra, Dec. 5, GNA - Government on Tuesday signed a 46.2 million-dollar loan agreement with the World Bank to support the implementation of the second phase of the Coastal Transmission Backbone Project under the West Africa Power Pool Project (WAPP). The amount to be on-lent to the Volta River Authority (VRA) would be used to extend the Akosombo Generating Station Switchyard, construct a third bulk supply point in Accra/Tema load centres and upgrade the VRA System Control and Data Acquisition Centre at Tema.

It would also cover the rehabilitation of the cranes and penstocks at Akosombo generating station, the procurement and installation of modern circuit breakers and relays at Kpong generating station switchyard and supply of equipment, simulation, training modules and human capacity development.

Signing on behalf of the Government of Ghana, Mr Kwadwo Baah-Wiredu Minister of Finance and Economic Planning, said the loan had a 30-year term of credit, 10-year moratorium, 0.75 per annum service charge and a 0.5 per cent per annum commitment fee. He said in 2005 Ghana received from the Bank, 40 million dollars for the first phase of the project.

Mr Ishac Diwan, World Bank Country Director who signed for the Bank, lauded Ghana's leading role to integrate the national power systems of ECOWAS member countries.

He described it as one of flagship projects in the sub-region, which were likely to be emulated by other regional blocs on the continent when it became successful.

Mr Kwame Ampofo-Twumasi, Deputy Minister of Energy, explained that when the interconnection of the high voltage transmission systems of all countries in ECOWAS was completed, it would allow for energy trading among the countries.

This, he said, would ensure the optimisation of investments through reliable energy supply for the participating countries. "The WAPP will provide a cooperative power pooling system which would increase electricity access to the people in the sub-region in a reliable and cost effective manner," Mr Ampofo-Twumasi said. Mr Eric Yankah, Deputy Chief Executive of VRA, said the credit facility would largely enable VRA to improve its evacuation capacity. He pledged the VRA's commitment to use the funds judiciously and appealed to Ghanaians to help build a good working relationship by honouring their obligation when it came to electricity tariffs.