45-million dollar loan approved

Accra, March 1, GNA - Parliament on Thursday approved by resolution a 45-million dollar loan agreement that would increase cross-border electricity trade within the ECOWAS region.

The agreement, between the government and the International Development Association, is part of a regional infrastructure development programme of ECOWAS, which would ensure interconnection of power and trading of energy.

The project, when completed would go a long way to reduce the nation's over reliance on the Akosombo Dam. The loan has a 30-year term of credit with a 10-year moratorium and a semi-annual installment repayment period commencing on September 15, 2016 and ending March 15, 2046.

The project, known as the Coastal Transmission Backbone Project, has various aspects, including the upgrading of the Akosombo, Volta sub stations and switchgear at the Kpong Generation Station and the construction of a third bulk supply point for the Accra/Tema load centres.

A Finance Committee report said: "The technical team informed the Committee that under West Africa Power Pool, a number of transmission lines and power related works would be constructed in the country to form the backbone for the trading and exchange of power within the sub-region."

The House also approved 68,923,640 million dollars for financing the Accra Sewerage Improvement project, aimed at extending and improving the sewerage and sanitation system for disposing waste water from Accra in an environmentally acceptable way.

The loan has no interest charge and a repayment period of 40 years with a 10-year grace period.

The facility would help construct two treatment plants at Legon and the Densu delta.

"The committee noted that immediate beneficiaries of the project will be the urban and peri-urban population of Accra of about 1,467,839, majority of whom are poor. The remaining population will benefit from public toilets and sanitation education programmes," the Finance Committee report said. 01 March 07

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