Government Considering Merger Of Bui Power Authority, VRA

Government has set up a committee to consider a merger between the Bui Power Authority (BPA) and the Volta River Authority (VRA). The merger is being proposed to consolidate efforts at hydropower generation in the country.

The Chief Executive officer of Bui Power Authority, Fred Oware said, “There is a committee that has been formed to look at the merger of Bui and VRA as a cabinet decision. I serve on that committee anyway, and we will meet again tomorrow to decide how the work is to be done.”

“It’s a government decision and the government would be advised by the committee as to how to go about it. It’s a bit premature since the work has not progressed far to comment on it but it’s a government decision and so be it,” he said while addressing the media in Accra.

Bui is expected to generate about 600 megawatts of power in 2018.

Mr Oware said, “In terms of renewables, we need a switchyard to evacuate the power before you put it unto the national grid. We have finished the construction, we have tested and commissioned a switchyard capable of evacuating 250mw of power. What is left is to build a solar pack.”

If this merger occurs, the Bui Power Authority will come with a buyers credit of about $230 million which it has to pay for loans it contracted for the establishment of the plant.

The total loan including government concession will cover a total cost of $790 million investments into the power plant.

So far, the power plant has generated and sold power worth over $335 million, but the electricity company of Ghana owes the power authority as much as $92,428,250 which is a quarter of the total buyers' credit.

The Bui dam was established to develop, deploy and sustainably utilise the resources of the Black Volta to derive the optimum national benefits primarily by providing electricity at a base price to spur industrial and agricultural production and impact the lives of millions.