Announcement of Ghana get Fifty Seven Million Dollars from World Bank on March 24, 1977

~ . ~·., ORM NO. 1121 {5-76) eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/70 IDA NEWS RELEASE NO. 77/37 March 24, 1977 GHANA GET $57 MILLION FROM WORLD BANK Ghana 1 s plan to expand its hydroelectric power generating and distribu- tion capacity will be assisted by two loans and a credit totalling $57 million announced today by the World Bank. The first loan of $39 million goes to the Kpong Hydroelectric Project. This project foresees the construction of a new dam on the Volta River with hydro- electric plant and transmission facilities. The new project is some 24 kilometers from the existing Akosombo Dam, also built with the assistance of a loan from the World Bank in 1962. The new $39 million World Bank loan will cover about 23 percent of the foreign exchange cost of the project, estimated at $172 million. It will also • finance, among other things, the purchase of construction equipment, vehicles, generating equipment, power house crane, transformers, materials, and equipment for transmission 1 ines. Other international donors participating in the Kpong Hydroelectric project are the Canadian International Development Agency, the European Develop- ment Fund, the European Investment Bank, the Kuwait Fund, the Saudi Fund for Development, and the Arab Bank for Economic Development in Africa. The second loan of $9 million and an IDA credit of the same amount will help finance a further phase of the development program of the Electricity Corpora- tion of Ghana. This consists mainly of the expansion of electric power subtrans- mission and distribution facilities, and the improvement of the Corporation's operations and management. Both projects are necessary to meet the growing demand for electric power in Ghana. While the Kpong project will substantially increase the power generating and distribution capacity, the second project will help improve and extend the dis- tribution of public electricity supplies in the country, and, thereby, serve the wider goal of improved economic development. Both the $39 million and the $9 million World Bank loans are payable over 20 years, including 4-1/2 years of grace, at an annual interest rate of 8.5 percent. The $9 mill ion IDA credit is repayable in 50 years, including 10 years of grace. ft is interest-free, except for a 3/4 of 1 percent service charge for • administrative expenses . NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 . '· .' (5-76) T E CHN I CA L DAT A PROJECT: COUNTRY: Third Power Ghana • TOTAL COST: $26. 7 mi 11 ion BANK FINANCING: $9.0 million, payable over·20 years, including 4-1/2 years of grace, at an annual interest rate of 8.5 percent. IDA FINANCING: $9.0 million. Standard IDA terms. OTHER FINANCING: The Electricity Corporation of Ghana $8.7 million IMPLEMEN71NG ORGANIZATION: The Electricity Corporation of Ghana (ECG), Accra, Ghana PROJECT DESCRIPTION: Expansion of electricity subtransmission and distribution facilities, and improvement of the operations and management of the Electricity Corporation of Ghana. It consists of the procurement and installation of about 230 circuit kiiometers of overhead and about 20 kilometers of underground 33 kV • lines; construction of 11 new substations with about 150 MVA of transformer capacity; ex- pansion of about 6 existing substations with about 60 MVA of additional transformer capa- city; equipment and material for rehabilitating the existing subtransmission and distribu- tion system; heavy, medium and 1 ight weight vehicles to replace and or expand existing fleet. PROCUREMENT: Retroactive financing totalling about $1.5 mill ion (from January 1976) for foreign exchange costs of contract expenditures and engineering consultant's services. Equipment, erection and supplies to be financed out of the proceeds of the proposed loan will be procured under international competitive bidding in accordance with the Bank's Guidelines, except for about $500,000 equivalent of subtransmission and distribution equipment and materials which for standardization reasons will be procured from the suppliers of the equipment under the previous program, provided that the prices are reasonably in line with those obtained for similar items under international competitive bidding. CONSULTANTS: About 105 man-months of engineering services to assist the ECG in preparation and analysis of bids, to supervise project execution and two man years to conduct a power sector study. The personnel cost of the engineering assistance is valued at about $464,000 at $4,400 per man-month, and about $100,000 for the power sector study. RATE OF RETURN: 14.2% ESTIMATED COMPLHION DATE: 1979 • - 0 - 4- It ...., . , , . FORM NO. 1121 (5-76) T EC HN I CA L D A T A .ROJECT: Kpong Hydroelectric COUNTRY: Ghana TOTAL COST: $236. 5 mi 11 ion BANK FI NANC I NG : $39 million, payable over 2b years, including ~-1/2 years of grace, at an annual interest rate of 8.5 percent. OTHER FINANCING: Arab Agencies $73.0 mil 1 ion Canadian International Development Agency (CIDA): $39.0 mi 1 iion European Development Fund (FED) $ 10. 0 mi i 1 ion European Investment Bank (EIB) $ 11 • 0 mi 1 l i on Volta River Authority (VRA) : . $64. 5 mi 11 ion IMPLEMENTING ORGANIZATION: The Volta River Authority (VRA), Accra, Ghana PROJECT DESCRIPTION: Construction of the Kpong Dam and a four unit 160 MW hydropower plant, 24 kilor,1eters downstream from Akosombo, and associated 60 kilometer double circuit, 161 KV transmission line to Terna; installation of a 25 MVAR synchronous condenser at Prestea and a 25 MVAR static condenser at Kumasi for reactive power compensation on transmission grid of Volta River Authority; construction of a 161 kV, • 80 kilometer transmission 1 ine and related substations to supply the Sefwi-Wiawso-Bibiani area in Southwestern Ghana; and addition of a 161 kV, 25 kilometer transmission line from Terna to Accra. PROCUREMENT: The items to be financed by CIDA will be awarded after competitive bidding in Canada. All other items for the project involving foreign financing will be procured through international competitive bidding. The only deviation from the Bank Guidelines will be in the arrange- ment with FED and EIB which provides for the date of bid opening to be the operative date in establishing the rate of exchange for bid evaluation. Retroactive financing of about $1 .0 million will be provided from the Bank loan to cover advance procurement of construc- tion equipment. CONSULTANTS: Acres Ltd. of Canada will supervise and manage constructlon of the Kpong dam. VRA will aJso employ consultants to design the line and substations for the Sefwi-Wiawso-Bibiani sector. ltalconsult-Cesi of Italy will design and supervise installation of the proposed reactive power compensation equipment and the Terna-Accra 1 ine. ' ~ATE OF RETURN: 11 % ESTIMATED COMPLETION DATE: 1979 - 0 -