The African Development Bank (AfDB) Group has approved a $30.47m grant and a $43.9m loan to the Republic of Ghana to reinforce and extend the nation's power distribution network.
The Electricity Distribution System Reinforcement and Extension project targets to enhance the Ghanaian population's access to reliable and quality electricity services.
The project, estimated to cost approximately $86.18m, involves the construction of new bulk supply point and switching substations in Kasoa, Juabeso and Asankragwa.
It also comprises the reinforcement of the distribution network in the Ashanti East and West regions along with the reinforcement of the present distribution system and extension of the system to cover the un-electrified portions of the peri-urban or rural communities in the Kasoa, Juabeso, Asankragwa and Volta River area.
The country will also take up the deployment of off-grid solar photovoltaic systems in 60 lakeside and island communities, and the empowerment of key institutions in the power sector through institutional development and capacity building. Modern and reliable power will be provided under the project to 30 schools and 30 health centers.
AfDB Ghana Country Office resident representative Marie-Laure Akin-Olugbade said that one of the key barriers to sustainable economic development in Ghana is the insufficient power supply to urban, peri-urban and rural households and businesses.
Olugbade said, "It is expected that with this project, Electricity Company of Ghana's ability to provide reliable and quality power supply to its customers will improve, with all the positive socio-economic impact this will have on the businesses and the Ghanaian population as a whole."
The project will reach around 61,000 customers in Kasoa; 13,000 in Juabeso; and 9,000 in Asankragwa while it will also connect an estimated 37,800 new households and 650 new businesses in the Kasoa District in the Central Region, Juabeso and Amenfi West Districts in the western region.
The project will finally improve operational efficiency and revenue base of Electricity Company of Ghana.