Ghana receives €9.7 million EU grant to improve access to power in Sub-region

• Posted on January 29, 2021January 29, 2021
• by Nana Kwesi Coomson
• Comment

The European Union (EU), through the French Development Agency – Agence Francaise Development (AFD) – has approved a new €9.7 million grant for the Ghana Grid Company (GRIDCo) to boost infrastructure works on the interconnection line between Ghana and Burkina Faso.

This is expected to increase electricity access in Northern Ghana and exporting capacity to the sub-region, especially Burkina Faso.

Reductions in transmission losses

The EU grant facility will be used to finance the upgrade of an 18km long 161kV transmission line located between Ahodwo and Anwomaso substation in Ghana’s second largest city, Kumasi. It will also support power transfer capacity from the south of the country up to Burkina Faso, through the 330kV line from Kumasi to Bolgatanga as well as reductions in transmission losses.

The 330kV line project was initially financed with a US$174 million loan from AFD to GRIDCo and a €4.8 million technical assistance grant from the EU.

The €9.7 million grant agreement was signed in Accra by AFD Country Director, Christophe Cottet and GRIDCo Chief Executive, Jonathan Amoako-Baah. The EU Ambassador in Ghana, Diana Acconcia and French Ambassador to Ghana, Anne-Sophie Avé, were present at the ceremony and co-signed the agreement.

Acconcia emphasized the project’s contribution to securing the overall Ghana-Burkina Faso interconnection line, which is a priority under the West African Power Pool (WAPP).

“It is a great example of European partners coming together to support integration of regional electricity markets. This project will also directly benefit Ghana.

“It will enhance the efficiency and reliability of the transmission network, and strengthen the electricity flows to the North. Thus, contributing to the industrialisation of those regions and unlock new economic opportunities.”

Avé, Ambassador of France to Ghana, said: “France is a long time and constant partner of GRIDCO. When GRIDCO most needed support, France was there, through her operator, the AFD. Because the only way is up and forward, this new project, supported by EU and France, will strengthen one of the largest development investments of France for Ghana, to enhance and upgrade electricity transport in Ghana and from Ghana.

Reliability of energy

“It will improve the reliability of energy distribution and bring revenues to the country through exports of over-production. This exemplary partnership between Ghana and France will provide sustainable “greener” growth, jobs and revenues for the Ghanaian people.”

Amoako-Baah, GRIDCo Chief Executive said: “This financial support from the EU represents a significant investment in our quest to remain the leading power transmitter in the sub-region. Our long-standing relationship with the EU, through AFD, continues to prove instrumental in the delivery of quality access to electricity in West Africa, in line with Goal 7 of the Sustainable Development Goals (SDGs).”