WASHINGTON, June 29, 2010―The World Bank Group today approved an additional US$70 million for the Electricity Company of Ghana (ECG) under the Ghana Energy Development and Access Project (GEDAP).
The project is to help ECG further overhaul over-aged substations and supply lines with the aim to reduce technical losses, improve supply quality to clients, connect more customers, and increase revenue collection in targeted areas.
The first GEDAP was approved in 2007 to improve the operational efficiency of the electricity distribution system and increase the population’s access to power and to help transition Ghana to a low-carbon economy through the reduction of green house gas emissions. It has three main components: (a) Sector and Institutional Development; (b) Electricity Distribution Improvement; and (c) Electricity Access and Renewable Energy. The additional financing comes in response to a request to assist with an expansion of ongoing activities, so as to scale up project impact and effectiveness. The bulk of the proposed activities would be focused on improving the electricity distribution network and service delivery in the Ashanti Region, where ECG’s losses are the highest yet demand growth is the fastest.
“It is the hope of the World Bank that this additional financing will be utilized with dispatch to minimize electricity outages. We also hope that this can help further increase access, in deprived areas, to reliable electricity,” said Country Director Ishac Diwan.
The World Bank would lend to the Government of Ghana on terms and conditions of the International Development Association: 35-year maturity, 10-year grace period and 0.75 point service fee. ECG would cover the currency exchange risk. The funds would be on-lent to ECG by the Government of Ghana on the same terms and conditions as those in the original GEDAP Financing Agreement. ECG will be solely responsible for implementation of the proposed scaled-up activities under the additional financing.