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Gov't signs loan agreement for 2nd
phase of WAPP project
Accra, Dec. 5, Ghanadot/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.
GNA
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