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Ghana Northern Region Electrification Project (Electrification Project Phase I)

2023-05-23 08:11:02
The Northern Region Electrification Project is the fourth phase of the National Electrification Scheme funded by the Ministry of Energy of the government of Ghana. Through previous phases of the National Electrification Scheme, the construction of main grid across the country and rural electric networks in some regions were completed while most of the remote rural areas were not energized.

Project picture.[Photo/HNCEG]

Therefore, this project covers construction of rural network of the Northern region which mainly includes erection of HT line from main grid to rural communities, transformer installation, erection of LV lines from transformer to household, household connections and electric meters installation. 

The Ministry of Finance of the Government of Ghana as the borrower secures loan from Industrial and Commercial Bank of China (ICBC) based on buyer’s credit which insured by SINOSURE to provide funds to the construction of the Northern Electrification Project. The contract amount is 120 million US dollars of which 85% is commercial loan from ICBC based on buyer’s credit and 15% is raised by the Government of Ghana. The repayment period is 10 years with a grace period of 5 years. The above attempt is quite a success though it is all the first time to the government of Ghana, Hunan Construction Engineering Group Co., Ltd and ICBC.


Project picture.[Photo/HNCEG]
The project commenced on July 16, 2012 and actually completed on October 31, 2016 despite the contract period is 1825 days. Under the project, 423 communities were energized, 2187 km of HT lines and 2241 km of LV lines were erected and 474 sets of transformer were installed. It is therefore a people’s livelihood project that brings with people in Ghana bright lives and improved living conditions. It further improved the friendship between China and Ghana and at the meantime inspired the export of Made-in-China products as all materials except for electric poles are of Chinese brands, highlighting the reputation of Chinese products. 

The government of Ghana started the repayment of principal and interest of the loan to ICBC when the defect notification period of the project was due by the end of 2017.