Ghana - Thermal Power Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6218-GH MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 124.1 MILLION TO THE REPUBLIC OF GHANA FOR A THERMAL POWER PROJECT JANUARY 18, 1995 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENT (Average 1994) Currency Unit = Cedi US$1 = C967 e1 = US$0.001 WEIGHTS AND MEASURES Kilowatt (kW) = 1,000 watts Megawatt (MW) = 1,000 kilowatt O(W) Kilowatt hour (kWh) = 1,000 watt hour Gigawatt hour (GWh) = 1 million kilowatt hour (kWh) Kilometer (km) = 1,000 m or 0.62 miles Kilovolt (kV) = 1,000 volt Megavolt ampere (MVA) = 1,000 kilovolt ampere (kVA) One barrel (bbl) = 0.16 cubic meters One ton of oil equiv. (toe) = about 7 bbl of crude oil PRINCIPAL ABBREVIATIONS AND ACRONYMS USED ANFA = Average Net Fixed Assets BADEA = Banque arabe pour le d6veloppement 6conomique en Afrique CDC = Commonwealth Development Corporation CEB = Communaute dlectrique du Benin CFD = Caisse frangaise de d6veloppement CIDA = Canadian International Development Agency DANIDA = Danish International Development Agency ECG = Electricity Corporation of Ghana EECI = Energie electrique de la C6te d'Ivoire EDF = Electricite de France EIB = European Investment Bank ESB = Electricity Supply Board of Ireland GOG = Government of Ghana GWSC = Ghana Water and Sewage Corporation MOME = Ministry of Mines and Energy NDFC = Netherlands Development Finance Corporation NED = Northern Electricity Department, VRA NEF = National Electrification Fund ODA = Overseas Development Administration ROR = Rate of Return SONABEL = Societe nationale d'6lectricit6 du Burkina VALCO = Volta Aluminum Company VRA = Volta River Authority FISCAL YEAR January 1 - December 31  REPUBLIC OF GHANA FOR OFFICIAL USE ONLY THERMAL POWER PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Ghana Beneficiaries: The Volta River Authority (VRA) and the Ministry of Mines and Energy (MOME) Amount: SDR 124.1 million (US$175.6 million equivalent) Terms: Standard IDA, with 40-year maturity Relending Terms: The Government would relend SDR 120.56 million (US$170.6 million equivalent) to VRA for 17 years, including a 3-year grace period, at 8 percent per year. VRA would be responsible for the foreign exchange risk. The remaining SDR 3.54 million (US$5.0 million) would be passed on to the MOME for the regulatory, demand-side management, and power sector institutional components. Financing Plan: &loa Foreign Total I ~ ~US$ Million- VRA 64.70 38.00 102.70 IDA 175.60 175.60 EIB 46.50 46.50 CDC 30.00 30.00 CFD 23.00 23.00 Kuwait Fund, BADEA, and ODA / 9.30 26.20 35.50 Government of Ghana 1.00 1 I0 Total 75.00 339.30 414.30 Economic Rate of Return: 18 percent Poverty Category: Not Applicable Staff Appraisal Report: Report No. 12252-GH Map: IBRD No. 25212 a/ Amounts indicated are subject to confirmation. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   INTERNATIONAL DEVELOPMENT ASSOCIATION MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF GHANA FOR A THERMAL POWER PROJECT 1. I submit for your approval the following report and recommendation on a proposed development credit to the Republic of Ghana for SDR 124.1 million, the equivalent of US$175.6 million, on standard IDA terms with a maturity of 40 years to help finance a Thermal Power Project. Out of the Credit the equivalent of SDR 120.56 million would be relent to the Volta River Authority (VRA) for 17 years including 3 years of grace, at 8 percent per annum. VRA will bear the foreign exchange risk. The remaining part of the Credit would be passed on to the Ministry of Mines and Energy (MOME) for the power sector institutional development components of the project. The European Investment Bank (EIB), Commonwealth Development Corporation (CDC), Caisse frangaise de developpement (CFD), Banque arabe pour le developpment economique en Afrique (BADEA) and the Kuwait Fund will cofinance the project. 2. Economic Background: Under the Economic Recovery Program (ERP) adopted in 1983, the Ghanaian economy moved from a state of near collapse to a state of consistently strong growth. Real GDP has grown at an annual average rate of around 5 percent since 1983, relative to an average of minus 2 percent during the previous decade. Significant policy reform and fiscal adjustment made such a turnaround feasible. Policy reform involving the reform of the trade and exchange rate systems, the elimination of price controls, liberalization of interest rates and investment regulations, created the necessary incentives for efficient growth. In addition, increased revenue mobilization under the ERP permitted the Government of Ghana (GOG), to invest substantially in infrastructure, including electrical power, while reducing fiscal deficits at the same time. The latter contributed to bringing down inflation from around 100 percent in 1984 to around 18 percent in 1991. 3. The election-related fiscal shock of 1992 notwithstanding, a decade of sustained fiscal adjustment, has brought the macroeconomic issue back to the fore. In the run-up to the 1992 elections, public service wage increases and revenue slippages led to the re-emergence of relatively large fiscal deficits and their financing mostly through increases in Central Bank credit. Although the fiscal situation improved significantly in 1993-albeit not as much as planned--and the economy grew by 5 percent, annual inflation rose to 27 percent by December 1993. Lower GDP growth in 1994 and continued monetary expansion originating from the Central Bank's financing of the deficit prevented a decline in inflation by end 1994, which amounted to about 29 percent. However, stabilization efforts in 1995 are intended to reestablish fiscal balance. 4. Ghana's growth rate is projected to rise to 5.6 percent by the turn of the century. A higher growth rate is predicated on the GOG's commitment to restore and maintain macroeconomic balance from 1995 onwards, proceed expeditiously with privatization, improve capacity in public and private sectors and accelerate the investments in infrastructure and human resource development. In the immediate years, most of the expected growth is likely to originate from agriculture, mining, financial services and transport; higher manufacturing growth is projected to follow with a lag. 5. Sector Background: The provision of an economically appropriate quantity and quality of electricity supply is a fundamental requirement of Ghana's continued progress in the adjustment, growth and diversification of its economy. In 1993, electricity generation was around 6406 GWh, of which about 1122 GWh (or 17.3 percent) served residential consumers, and the remainder commercial/industrial  -2 - (67.1 percent), electricity export markets (6.5 percent) and losses (9.1 percent). Between 1985 and 1993, domestic demand has been growing at an annual average rate of 10.8 percent. This largely reflects the country's continued economic expansion and the growing capability of the power system to meet suppressed demand. Tariffs are being increased to meet in 1995 the utilities' financial performance criteria, the resulting tariffs being increasingly commensurate with the long run marginal cost of power supply. Domestic load growth is expected to average about 6.1 percent per year and total load growth (i.e., including the Volta Aluminum Company (VALCO) aluminum smelter and exports) about 2.2 percent per year to the year 2000. The firm capacity of the hydro system is 808 MW and sustainable average annual energy production about 4900 GWh. By 1995, peak demand and annual energy requirements are forecast to be 1004 MW/6932 GWh. The power system is already under-installed relative to the load, and there will be a combination of demand management and excessive reservoir depletion over the next few years in order to balance supply and demand, pending the earliest availability of additional power supply. The Feasibility Study for the proposed project, and the additional option analysis conducted during project appraisal in mid-1993, recommends the installation of 400 MW of capacity by 2000 in order to meet the load over that period. 6. The Volta River Authority (VRA) owns the existing capacity, most of which is contained in the Akosombo plant, erected in the early 1960s and now undergoing a major overhaul under the VRA Sixth Power Project (Cr. 2109-GH). VRA sells electricity to: the Electricity Corporation of Ghana (ECG), VALCO, the mining companies, and neighboring countries, and it distributes electricity in Northern Ghana. About 60 percent of VRA's sales revenues are earned in foreign currency. VRA is a relatively well-run public utility with few institutional and financial problems. ECG, which distributes electricity to a large number of domestic consumers, is the focus of a major distribution system rehabilitation effort under the on-going ECG Fifth Power Project and a commercial operation management contract under the National Electrification Project approved in March 1993. 7. The main thrusts of the GOG's policy with respect to the power sector are to proceed with electrification of rural areas and urban centers, to expand generation capacity as appropriate, to allow tariffs which meet the utilities' financial requirements and reflect the incremental costs of supply, and to improve the utilities' technical and commercial efficiency, the latter more particularly pertaining to ECG. GOG is also devoting considerable policy attention to the institutional framework for setting tariffs, demand-side management of electricity use and the scope for private sector participation in the electrical utility business. 8. Proiect Objectives: The objectives of the proposed project are to: enable VRA to maintain the country's electricity supply by providing the generating capacity to meet the electricity demand in Ghana; enhance operational efficiency through transmission and generation systems improvements; moderate demand growth through economic demand-side management programming; strengthen the institutional capabilities of the power sector and of VRA by supporting its ongoing program of institutional development to meet the requirements for the mid 1990s and beyond. The institutional strengthening will include development of new regulatory arrangements for the sector, and measures to encourage private sector participation in the development of power supply. 9. Project Description: The project consists of the construction at Takoradi of 300 MW combined- cycle generation capacity, consisting of two combustion turbine generator sets of 100 MW each, a heat recovery boiler and a steam turbine generator to produce an additional 100 MW; generation-associated transmission and associated sub-stations; consulting engineering services to manage and supervise the project; and managerial and technical services for the operation and maintenance of the power station. The project would also include support for the development of suitable regulatory and ownership arrangements for the power sector, a program for demand-side management and support for VRA's program of institutional development and capacity building through training and technical assistance.  - 3 - 10. Project Financing: The total financing requirement is for US$414.30 million, of which the foreign portion is US$339.30 million and the local portion US$75 million. For the foreign portion, US$175.6 million will come from IDA, US$125.70 million from co-financiers (EIB, CDC (UK), CFD, the Kuwait Fund and BADEA), and US$38 million from VRA. All of the potential co-financiers have taken steps towards the signature of respective financing agreements. The Netherlands Development Finance Corporation (NDFC) has expressed interest to participate with up to US$15.0 million; if and when their participation is confirmed, the IDA amount would be reduced accordingly. For the local financing, US$64.70 million will come from VRA, and US$9.3 million from several of the co-financiers. A breakdown of costs and financing plan is shown in Schedule A. Amounts and methods of procurement and disbursement schedule are shown in Schedule B. A timetable of key project processing events and status of Bank group operations in Ghana are given in Schedule C and D, respectively. A map is attached. The Staff Appraisal Report No. 12252-GH, dated January 1995, is being distributed separately. 11. Project Implementation: VRA will be the implementing agency for the generation and associated transmission components of the proposed project. A foreign consulting firm has been retained to assist VRA in system studies, basic engineering, preparation of tender and contract documents, and evaluation of bids for the proposed project. The consulting firm has completed optimization of plant size and location and has prepared a detailed cost estimate. Preparation of tender documents were completed in September 1994. Engineering services for review of vendor drawings and construction supervision will be retained following Bank guidelines. The terms of reference for the consultancy and technical services for "Supervision of Project Implementation" have been agreed during appraisal. Engineering studies for the transmission line, sub-station works and preparation of tender documents have also been undertaken by the same consulting firm. Terms of reference for assistance to the Government's Committee on Power Sector Reform (private sector participation and regulation) as well as the scope and content of the demand management program were agreed during appraisal. 12. The proposed implementation timetable has been discussed and agreed with VRA during appraisal. The project is expected to be substantially complete by early 1998. The two combustion turbines should become operational by early 1997 and the combined cycle facilities by early 1998. VRA will receive operational assistance from a private contractor for about three and a half years commencing six months before the commercial operation of the first combustion turbine. Terms of reference for an acceptable performance-based plant management contract have been agreed. Project implementation will be VRA's responsibility through its Directorate of Engineering and Construction. VRA has prepared the organizational arrangements for the project which are satisfactory. 13. Project Sustainability: The project design will contribute to the utility's institutional and financial sustainability in several important ways: first, there will be adequate contractual arrangements in place to insure that VRA will be able to master the thermal technology and supply electricity in a reliable manner, as it does for its hydro system; second, given the contribution to the incremental cost of generation which this project will incur, the tariff covenant requires that the utilities earn no less than 8 percent rate of return on currently valued average net fixed assets in operation. Based on present estimates for VRA, these tariffs would also reflect full long run marginal cost (LRMC) by 1997; third, the proposed process to eventually transfer decision authority for tariffs to a regulatory body should help to maintain tariff setting on a technically sound basis. 14. Lessons from Previous BankIIDA Involvement: The main lessons from experience with ECG, VRA and the GOG's operations in the power sector are that: (i) the tariff adjustment process has been cumbersome; and (ii) VRA and ECG have been having difficulty in collecting government obligations due to them through the cross-debt clearing mechanism, which was created to facilitate the settlement of net receivables between the GOG, VRA, ECG and the Ghana Water and Sewage Corporation (GSWC). The major problems which the Bank has identified for the thermal power projects in Africa are:  - 4 - inadequate tariffs and revenue collection resulting in under-recovery of costs; poor plant performance; adverse environmental effects; poor maintenance, manpower and management practices at the utilities; lack of foreign exchange for spare parts; and weaknesses in project preparation. 15. The project is making adequate provision for securing tariffs which meet the utility's financial requirements and which also increasingly reflect the incremental costs of service. The tariff increases of 1994 and 1995 indicate the GOG's commitment to this objective. For purposes of an easier tariff administration called for under the new parliamentary approval procedures, the GOG requested that its tariff covenants with financiers be expressed in terms of an 8 percent rate of return on average net fixed assets (ANFA), rather than the LRMC formula developed under the National Electrification Project. Insofar as both approaches produce very similar results, the tariff covenant will require tariffs commensurate with an 8 percent rate of return on ANFA. The LRMC calculations will provide guidance on the setting of an appropriate tariff structure with which to satisfy this covenant. Additional measures to place the tariff-making process on a technically sound basis are being addressed in this project through preparation of new regulatory arrangements. The project requires settlement of GOG obligations to the Cross-Debts Clearing House System. The Bank, and VRA's technical partner, Ontario Hydro will continue to provide technical assistance to enhance VRA's capacity. Plant availability and efficiency will be assured through the project supervision and maintenance components of the contracts to be awarded for this project. VRA will also be required to establish management, inventory, control and maintenance systems commensurate with the operational requirements of this technology, all of which is to be provided for under the maintenance provisions of the construction contract. Access to foreign exchange for importing spares and fuel should not be a problem because VRA earns a large part of its revenue in foreign exchange and Ghana does not have exchange controls. 16. Rationale for Bank/IDA involvement: The project is consistent with the Bank's Country Assistance Strategy (CAS) presented to the Executive Directors in April 1994. The strategy seeks to support the GOG in sustaining macroeconomic stability, promoting private sector development in all sectors of the economy, developing and utilizing indigenous capacity and investing heavily in infrastructure and human resource development, to achieve the twin goals of rapid growth and poverty reduction. The project will not only increase the availability of electricity to the economy and promote its efficient use-a key requirement for increased private investment and rapid growth-but also enhance indigenous management capacity and private participation in the power sector. 17. The Bank Group has been closely involved in the development of Ghana's power sector over the past 30 years. Since Ghana embarked on its economic recovery program in 1983, IDA's objective has been to help remove the power sector as a potential constraint to the country's economic development and to assist the GOG in developing a financially viable and well-managed sector, whose institutions enjoy a high degree of autonomy are operating on commercial terms and are capable of delivering a reliable and economic supply of electricity. In recent years, under several completed and ongoing projects financed by IDA, the GOG has embarked on rehabilitating and improving Ghana's power generation and distribution facilities and extending the benefits of power supply to a larger segment of the population. IDA's continued participation in the sector through the FY93 National Electrification Project will assist the authorities to develop a sound national electrification program, expand the social and developmental benefits of electricity to more of the population, facilitate the development of a more balanced distribution of economic productive activity across the country and encourage the strengthening of utility commercial structures essential for the health of the power sector. The proposed project is part of GOG's long-term strategy to strengthen power sector institutions and management through private sector participation and improved regulation, and to provide for an adequate and sufficiently reliable power supply through thermal complementation and necessary sector investments. With IDA assistance, technologies new to Ghana will be introduced and further institutional reforms will be undertaken. IDA's participation as a catalyst for co-financier support has also been important. _- - - - - -  - 5 - 18. During preparation of the proposed project, there was extensive dialogue between GOG, the utilities and the IDA project team on the role of the private sector in Ghana's power system development. In light of Ghana's longer term economic growth objectives and the importance of an adequate and efficiently provided electricity supply to achieving these objectives, MOME took the initiative of developing a comprehensive new policy framework for encouraging private participation in the power sector. With regard to private sector participation in this project, the GOG tried to interest VALCO (the aluminum smelter) in the development of thermal complementation for the hydro-based system. VALCO, however, prefers to confine its participation to the existing contract for power from the Akosombo hydroelectric plant. During the preparation of the project, both the GOG and IDA considered the feasibility and appropriateness of other private sector ownership interest in the proposed facility. The GOG considered it most appropriate for VRA to develop this project, because of its complementarity to the more effective operation of the hydro system and its concern that a private project of this size would be higher cost than a VRA-sponsored project, thereby having a larger impact on required tariff increases. In addition, a regulatory structure conducive to attracting and securing private investment in a manner which satisfactorily addresses public interest concerns and the investor's requirements, is not in yet place. Finally, the project is long overdue relative to the system's needs. Early indications were that it would be difficult to secure, in a timely and appropriate way, private ownership and responsibility for a project of this size in Ghana at this time. Private debt financing was not considered because of the constraint on the amount of private sector debt for which Ghana can contract. While this plant will be developed by VRA, the GOG has been actively exploring avenues for private participation in subsequent, smaller investments to the system's generation capacity. The proposed project will assist this process. 19. The project is consistent with the Bank's recent policy papers on power sector development and contains specific components for the further implementation of key aspects of that policy. The project provides for (i) assistance to the GOG for the identification and selection of new regulatory arrangements consistent with the GOG's policy with respect to private sector participation; (ii) assistance to the GOG's committee on power sector reform to develop options and select a program for reforming utility ownership and corporate structure, with a view to opening the sector to competition and private sector participation. In this regard the GOG's Letter of Sector Development Policy (LSDP) describes the policy framework it has developed during project preparation for the future role of the private sector in the country's power supply; (iii) commitment to improving sector performance by a) privatization of power sector management with the implementation of a private sector performance-based management contract for the thermal power plant; and b) attention to demand-side management with a project component that develops and implements market policy instruments, institutional arrangements and program specific interventions to promote and sustain electricity demand management through improvements in energy use by consumers. 20. Agreed Action: Specific conditionalities have been agreed as follows. The GOG agreed to: (a) onlending arrangements for the Credit; (b) payments through the Clearing House System to be made on monthly basis; (c) the Power Sector Reform Committee operating under TOR satisfactory to IDA; (d) cause VRA to carry out a mitigation plan, satisfactory to IDA, to implement the measures set out in the Environmental Assessment Report; (e) no later than May 31, 1995, present a draft report for modifying the regulatory framework governing electricity utilities and for increasing private sector private sector participation in the electric sector and taking into account IDA's comments, adopt a final report no later than September 30, 1995, and on the basis of such report, prepare no later than December 31, 1995 on action plan satisfactory to IDA, and there after implement such action plan in a timely manner; (f) carry out a mid-term review of the project and the MOME Program in about 14 months after effectiveness of the Credit and (g) project accounts being audited by independent auditors. VRA agreed to (i) submit to IDA audited accounts within six months of its fiscal year end; (ii) continue to earn at least 8 percent rate of return on ANFA; (iii) to settle bills payable to the Clearing House System on a monthly basis; (iv) maintain adequate future debt service coverage (i.e., 1.5 times) by future net revenues;  - 6 - (v) maintain a fund to cover foreign exchange debt service; and (vi) review each year, with IDA its capital expenditure program for the next five years. Conditions of Credit effectiveness are as follows: a) implementation of the agreed tariff for 1995; b) signing of subsidiary Loan Agreement between the Government and VRA; and c) effectiveness of cofinancing for the thermal generation component. Conditions of Disbursement for the MOME portion is as follows: to adopt TOR satisfactory to IDA for the operation of the Electricity Demand Management Program. 21. Environmental Aspects: The project is under environmental category A. VRA, with its consultants, have proceeded with the conceptual design of the Power Station in accordance with international engineering practices and standards to mitigate adverse effects to the environment. In addition, VRA has retained a consultant and agreed on the terms of reference in accordance with the guidelines provided by the Ghana Environmental Protection Council and the World Bank Environmental Source Handbook. The Environmental Assessment Report has been completed and presented for IDA's review. This report is also available for review at VRA's headquarters in Accra. The construction of the project does not require the resettlement of any household. The main environmental issues are: (i) the effect of the spent cooling water on marine life and the consequent effects on the fishing industry near the site of the project; (ii) air quality impacts; (iii) the effects of loss of site land on a handful of families who currently practice subsistence-level agriculture on the land; and (iv) potential oil spillage and/or leakage of oil. Furthermore, VRA, with the help of consultants, has completed a separate Environmental Assessment of the construction of the transmission lines. During negotiations, the Environmental Report, which was commended by Bank reviewers for its quality, was accepted by the Bank. VRA and the GOG have agreed to implement an Environmental Mitigation Plan for the project during its construction and operation; the plan was reviewed and approved by IDA. 22. Prozramn Objective Categories: The project will assist the country's economic growth and private sector development by ensuring an adequate supply of electricity both to meet basic needs and to support economic activities which improve the well-being of Ghanaians. It will also contribute to better public sector management through improved regulation, introduction of private sector participation in power generation, and further implementation of demand management. 23. Proiect Benefits: The benefits of the project include: improved public sector management of the electric power sector; more economic use of electricity through expanded demand management; and meeting incremental demand for electricity. The VRA generation system expansion strategy, of which this project is the first increment, is the least cost approach up to at least 12 percent real discount rate compared with the most likely feasible alternatives. The economic benefits for incremental domestic sales are valued at the estimated willingness-to-pay of residential consumers and the estimated alternative cost of self-supply for non-residential and industrial consumers. For incremental sales to export markets, benefits are estimated at an interruptible electricity tariff which is less than half the current tariff for firm exports, while for incremental sales to VALCO, benefits are valued at the current tariff to VALCO (reflecting current aluminum prices). Most of the incremental benefits are sourced from the domestic market. The economic internal rate of return is estimated at 18.0 percent. 24. Project Risks: There is a risk associated with the introduction of the combined cycle technology which is new to Ghana. This is being addressed through the operation and maintenance/training contract arrangements which would be put in place to manage and supervise the project from design to commissioning of the combustion turbines and beyond, as appropriate. The risk of inadequate tariffs to recover the increasing marginal cost of system operation is being addressed through the tariff conditionalities. Sensitivity tests were conducted for increased capital costs, increased oil prices, reduced domestic demand and lower willingness to pay, all within a range of 10 percent to 20 percent or more  of base case values, depending upon the variable tested, none of which caused the rate of return to fall below 12 percent. 25. Recommendation: I am satisfied that the proposed Credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Lewis T. Preston President Washington, D.C. January 18, 1995 Attachments   Schedule A GHANA THERMAL POWER PROJECT ESTIMATED COST AND FINANCING PLAN Foreign as a % of Component Local Foreign Total Total -(US$ Million) I. Takoradi Power Plant 52.30 209.10 261.40 80 II. Management Contract 0.70 8.90 9.60 93 III. Transmission 7.60 30.50 38.10 80 m. Engineering 2.30 9.70 12.00 81 IV. Power Sector & VRA Instit. Devt. 2.00 8.00 10.00 80 Total Base Cost 64.90 266.20 331.10 80 Contingencies: Physical 6.00 24.00 30.00 80 Price 4.10 16.10 20.20 80 Total Contingencies 10.10 40.10 50.20 80 Total Project Cost 75.00 306.30 381.30 80 Interest During Construction - 33.00 33.00 100 Total Financing Required 75.00 339.30 414.30 Local Foreign Total --(US$ million equivalent)- Financing Plan A/ VRA 64.70 38.00 102.70 IDA 175.60 175.60 EIB 46.50 46.50 CDC 30.00 30.00 CFD 23.00 23.00 Kuwait Fund, BADEA and ODA 9.30 26.20 35.50 Govermment of Ghana 1.00 1.00 Total 75.00 339.30 414.30 a/ Amounts indicated are subject to confirmation.   S5chedule B Page 1 of 2 GHANA THERMAL POWER PROJECT PROCUREMENT METHODS AND DISBURSEMENT A. Procurement PROCUREMENT METHOD a/ (USS Millions) Compnonent ICB OTHERbL NBFc/ TOTAL Takoradi Combined Cycle Plant (1) Pbwer Plant Package No. 1 179.30 179.30 (80.10) (80.10) Package No. 2 120.00 120.00 (70.60) (70.60) Land and Townsite 11.00 11.00 (2) Tranmission and Sub-stations 38.10 38.10 (3) Engineering 12.50 12.50 (10.00) (10.00) (4) Managenent Contact 10.40 10.40 (9.40) (9.40) (5) Power Sector and VRA Inst. Development dI 10.00 10.00 (5.50) (5.50) TOTAL 309.70 22.50 49.10 381.30 (160.1) (15.50) (175.60) a/ Amounts in brackets ar IDA financed. k/ Consulting services, technical assistance, International Shopping, direct procurement. _I Financed by CFD. d/ Includes the Electricity Demand Management Fund  Schedule B Page 2 of 2 B. Disbursemeni Amount % of Expenditure to Categora (USS Millions) be financed by IDA Credit VRA Power Plant 135.00 100% of foreign expenditure Consulting Services and Training 18.40 100% Equipment and Materials 1.00 100% Sub-total 154.40 MOME Consulting Services and Training 2.50 100% of total cost Miscellaneous Equipment 2.50 100% of total cost Sub-total 5.00 Unallocated 16.20 TOTAL 175.60 Estimated Disbursements a/ IDA Fiscal Year -----------(US$ million equivalent)-------------- 1996 1997 1998 1999 2000 Annual 29.50 66.30 49.70 27.10 3.00 Cumulative 29.50 95.80 145.50 172.60 175.60 a/ Assuming Credit effectiveness June 1995.  Schedule C GHANA NATIONAL ELECTRIFICATION PROJECT TIMETABLE OF KEY PROJECT PROCESSING EVENTS (a) Time taken to prepare the project: 15 months (b) Project prepared by:" VRA with IDA assistance (c) First IDA mission: April 1993 (d) Appraisal mission departure: June 1993 (e) Negotiations: June 1994 (f) Planned Date of Effectiveness: June 1995 (g) List of relevant PCRs/PPARs: Draft PCR for Northern Grid Extension Project (Cr. 1759-GH) dated June 29, 1993 1/ The appraisal mission consisted of Messrs. K. Framji (Task Manager/Principal Financial Economist), M. Segal (Senior Economist), C. Algandona (Senior Power Engineer), M. Ashouripour (Senior Financial Analyst), and Ms. Eleanor George (Senior Staff Assistant). A mission to update the financial data was carried out by Mr. Manouchehr Ashouripour in June 1994. Mr. Algandona became Task Manager in mid-August 1993.   Schedule D Page 1 of2 THE STATUS OF BANK GROUP OPERATIONS IN GHIANA STATEMENT OF IBRD LOANS AND IDA CREDITS (As ofDecember 31, 1994) Amount in USS Million (less cancellation) Loan or Credit Fiscal Number Year Borrower Purpose Bank IDA Undisbursed 9 loans and 52 credits fully disbursed 189.72 1276.20 .04 Of which SALs and Program Loansa Cr. 1393 83 Ghana Recon. lmports 40.00 0.00 F-0090 84 Ghana Expon Rehab. 3589 0.00 Cr. 1435 84 Ghana Export Rehab. 40.10 0.00 Cr. 1573 85 Ghana Recons. Import 60.00 0.00 A-0030 86 Ghana Recons. Import 26.97 0.00 Cr. 1672 86 Ghana Industrial Sector Adjust 28.50 0.00 A-0130 86 Ghana Industrial Sector Adjust 25.00 0.00 Cr. 1744 87 Ghana Education Sector Adjust 34.50 0.00 Cr. 1777 87 Ghana SAC I 34.00 0.00 A-0250 87 Ghana SAC I 81.00 0.00 A-0251 88 Ghana SAC I 15.00 0.00 Cr. 1911 88 Ghana Financial Sector Adjust. 100.00 0.00 Cr. 1911-1 89 Ghana Financial Sector Adjust 6.60 0.00 Cr. 2005 89 Ghana SAC 11 120.00 0.00 Cr. 2005-1 90 Ghana SAC 11 5.70 0.00 Cr. 2005-2 91 Ghana SAC II 8.30 0.00 Cr.2236-0 91 Ghana Private Invest. Promotion 120.00 0.00 Cr.2236-1 92 Ghana Private Invest. Promotion 6.10 0.00 Cr.2236-2 93 Ghana Private Invest. Promotion 6.54 0.00 Sub-Total 794.20 0.00 Cr. 1819 87 Ghana Petroleum Ref. & Daist 15.00 4.55 Cr. 1847 88 Ghana Public Enterprise TA 10.50 4.08 Cr. 1854 88 Ghana Cocoa Rehabilitation 40.00 26.96 Cr. 1858 88 Ghana Transport Rehabilitation 1 60.00 11.23 Cr. 1921 88 Ghana Mining Sector Rehab. 40.00 11.56 Cr. 1946 89 Ghana Telecomunications 11 19.00 3.50 Cr. 1976 ' 89 Ghana Forest Res. Management 39.40 16.94 Cr. 1996 89 Ghana Private SME Dev. 30.00 8.64 Cr. 2039 89 Ghana Water Sector Rehab. 25.00 15.10 Cr. 2040 89 Ghana Rural Finance 20.00 .36 Cr. 2061 90 Ghana Fifth Power (ECG) 40.00 15.85 Cr. 2109 90 Ghana VRA/Sixth Power 20.00 17.80 Cr. 2140 * 90 Ghana Education Sector Adjust 11 50.00 8.17 Cr. 2157 90 Ghana Urban 11 70.00 49.85 Cr. 2180 91 Ghana Agric. Diversification 16.50 15.10 Cr. 2192 91 Ghana Transport Rehabilitation 11 96.00 64.63 Cr. 2193 91 Ghana Heatth & Population 11 27.00 21.96 Cr. 2224 91 Ghana Econ. Management Support 15.00 8.61 Cr. 2247 91 Ghana National Agric. Research 22.00 19.68 Cr. 2278 91 Ghana Comm. Secondary Schis. 14.70 2.27 Cr. 2318 * 92 Ghana Financial Sector Adjust. It 100.00 43.05 Cr. 2319 92 Ghana National Feeder Roads 55.00 49.73 Cr. 2345 * 92 Ghana Agricultural Sector Adj. 80.00 20.98 Cr. 2346 92 Ghana Nat. Agric. Exten. 30.40 25.91 Cr. 2349 92 Ghana Lit. & Func. Skills 17.40 13.04 Cr. 2426 93 Ghana Envtal. Resource Mgt. 18.10 15.88 Cr. 2428 93 Ghana Tertiary Education 45.00 41.43 Cr. 2441 93 Ghana National Livestock Services 22.45 19.89 Cr.2467 93 Ghana National Electrification 80.00 79.78 Cr.2498 93 Ghana Urban Transport 76.20 79.55 Cr.2502 93 Ghana Enterprise Development 41.00 41.66 Cr.2508 93 Ghana Primary School Dcvt. 65.10 66.20 Cr. 2345-1 b * 94 Ghana Agricultural Sector Adj. 5.74 6.06 Cr.2555 94 Ghana Agricultural Sector Invest. 21.50 20.59 C2568-0 94 Ghana Local Government Dev. 38.50 40.64 C2604 94 Ghana Comm. Water & Sanitation 21.96 23.33 C2665 95 Ghana Private Sector Development 13.04 13.04 TOTAL 186.22 2666.81 872.91 of whch has been repaid 139.18 26.76 TOTAL now held by Bank and IDA 47.04 2640.05 Amount sold 0.38 of which repaid 0.38 TOTAL undisbursed 872.91 a Approved dunng or after FY80 b Not yet effective * SAL/SECAL or quick disbursing component  Schedule D Page 2 of 2 GHANA STATEMENT OF IFC INVESTMENTS (As of December 31, 1994) Original Gross Commitments Fiscal Amount in US$ million Year Borrower Type of Business Loan Equity Total 1985 Ashanti Goldfields Corp. Mining 55.0 - 55.0 1/ 1986 Keta Basin Oil Exploration Oil - 4.5 4.5 2/ 1987 Canadian Bogosu Resources Mining - 0.5 0.5 1989 Canadian Bogosu Resources II Mining - 0.5 0.5 1990 Continental Acceptances Ltd. Merchant Banking - 0.9 0.9 1990 Wahome Steel Ltd. Steel Mfg. 3.2 - 3.2 1989/90 Canadian Bogosu Resources III Mining 47.5 0.5 48.0 3/ 1990 Ashanti Goldfields Corp. II Mining 70.0 - 70.0 4/ 1990 Iduapriem Mining - 3.0 3.0 1991 Alugan (AEF) Aluminum 0.3 - 0.3 1991 Plastic Laminates (AEF) Plastics 0.6 - 0.6 1991 Hotel Investments (Ghana) Ltd. Tourism 4.2 - 4.2 1991 Dimples Inn (AEF) Tourism 0.2 - 0.2 1991 Canadian Bogosu Resources IV Mining 0.8 0.4 1.2 1991 Continental Acceptances II Merchant Banking 3.0 - 3.0 1991 Ghanal Aluminium - 0.4 0.4 1991 Securities Discount House Discount House - 0.2 0.2 1991 Appiah-Menkah (AEF) Soap Mfg. 0.9 - 0.9 1991 Iduapriem II Mining 36.5 - 36.5 51 1991 Packrite (AEF) Cardboard Mfg. 0.6 - 0.6 1993 Achimota Brewery Beer Mfg. 3.5 1.0 4.5 1993 Wahome Steel II Steel Mfg. 2.0 - 2.0 1993 Ecobank Merchant Bank 6.0 - 6.0 1993 Continental Acceptances II Merchant Banking 5.0 - 5.0 1993 Polymex (AEF) Plastic Bags 0.4 - 0.4 1993 BMK - Primewood (AEF) Particle Board 1.0 1.0 1993 Combined Farms (AEF) Agribusiness 0.4 - 0.4 1993 Ashanti Goldfields (AMEP) Mining 140.0 - 140.0 6/ 1993/94 Ghana Leasing Capital Markets 5.0 0.8 5.8 1994 Ghacem Cement 3.0 0.0 3.0 1994 Palm Royal (AEF) Tourism 1.0 0.0 1.0 1994 Afariwa (AEF) Agribusiness 0.4 - 0.4 1994 GHUMCO (AEF) Manufacturing 0.6 - 0.6 1995 Shangirha Tourism 0.3 - 0.3 Total Gross Commitment 391.4 12.7 404.1 Less repayments, cancellations 254.3 5.1 259.4 and exchange adjustments Net Commitments Held by IFC 137.1 7.6 144.7 Total Undisbursed 26.0 0.5 26.5 1/ Includes a US$27.5 million participation. 2/ Amount fully written off. 3/ Includes a US$29.0 million participation. 4/ Includes a US$35.0 million panicipation. 5/ Includes a US$30.0 million participation. 6/ Includes a US$I 10.0 million participation.  'Q ~~~ ~ ~~~~~-I. 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