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27.07.2005 Business & Finance

Loan agreement for Energy sector approved

GNA
Accra, July 27, GNA - Parliament on Wednesday approved a 40-million dollar loan agreement between the government and the International Development Association to finance the West Africa Power Programme (WAPP).
The project is to extend the lifespan and quality of the Bulk power transmission system, which would include construction of Aboadze-Tema 330 KV transmission line, rehabilitation of Kpong hydropower plant project and the construction of Bolgatanga-Ouagadougou transmission line project.
The others are the construction of Aboadze-Prestea transmission line project and the upgrading of the Volta River Authority (VRA) System Control Centre Project.
Presenting the report of the Committee on Finance, the Chairman, Mr Kwadwo Agyei-Addo said the project would ensure reliable water supply, which is critical to national development.
"It would allow for a reliable transfer of power from the western corridor to other sections of the country."
The project, he said, would also reduce power transfer loses in the principal transmission network and would outlay efficient coverage of peak power demand through economy power exchanges between WAPP member countries.
"It was further observed that at the present load levels on the transmission system, the loss of any line segment would result in disturbances that could lead to total collapse of the supply system. The commissioning of the 330 KV line would also bring about greater operational stability."
This would allowed Ghana access, should the need arise, to comparatively economical sources of electricity in the ECOWAS region. The loan has a repayment period of 30 years with a 10-year moratorium.
The House also approved a loan of 2.4 million dollars for integrated management of invasive aquatic weeds in West Africa. It is expected that the benefits of the project in Ghana would include a significant reduction of weed infestation, capacity building for motoring aquatic weeds infestation and the sensitisation of about 150,000 and 300,000 people within the affected communities for mobilisation to manage aquatic weeds.
The credit has a 40-year repayment period with no interest and a grace period of 10 years.


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