GRIDco receives € 9.7 million in additional EU support

The European Union (EU), through the Agence Française de Développement – Agence Française de Développement (AFD), has approved a € 9.7 million grant to Ghana Grid Company Limited (GRIDCo) to stimulate work on infrastructure of its Kumasi-Bolgatanga transport project.

The aim of the project is to improve and improve electricity supply and access to the northern regions of Ghana. It will also stimulate electricity exports to the sub-region under the West African Power Pool (WAPP), starting with Burkina Faso.

The grant was co-signed by Ms. Diana Acconcia, EU Ambassador to Ghana and Ms. Anne-Sophie Ave, French Ambassador to Ghana and Mr. Christophe Cottet, AFD Country Director and Mr. Jonathan Amoako-Baah, Director General of GRIDCo, both signing on behalf of their respective institutions.

The project is considered a key link and a priority in the West African energy pool. It was initially funded with 174 million dollars from AFD to GRIDCo and 4.8 million euros from EU technical assistance grant.

The grant would facilitate the early completion of the overdue project to ensure a sustainable and reliable electricity supply in Ghana and the sub-region.

The approval of the grant is also a recognition of the many strategic measures and prudent fiscal policies undertaken by the last board of GRIDCo.

For much of the past three years, work on the 330 kV transmission line project from Kumasi to Bolgatanga has slowed down as AFD was forced to stop paying contractors working on the project.

This was due to severe liquidity issues that resulted in GRIDCo’s inability to “service” AFD’s initial $ 174 million loan and other similar obligations.

— GNA