Agreement on Bui Dam project signed

Accra, April 19, GNA - An engineering and procurement contract between the Ministry of Energy and a Chinese organization, " Sino hydro" was on Thursday singed for the beginning of the construction of a major hydropower facility at Bui.

Mr Joseph Kofi Adda, who signed the agreement on behalf of government said the current power situation supported the implementation of the Bui Dam project, which was identified in the early 1920s.

The project estimated at about 600 million dollars, when implemented would assure the country of energy supply in the long term of about 400 megawatts as against the current supply of about 1700 megawatts.

"We are in the process of negotiating a price," he said and noted that the signing of the agreement is the beginning of the project to go through cabinet and parliament.

Mr Adda noted that the Chinese organization handling the project is a leading hydropower company in China and noted that 2,900 Ghanaians will be contracted to work on the project as against 500 Chinese. He said substantial amount of materials required for the project would be supplied by Ghanaian companies thus generating jobs. Mentioning additional potentials of the dam, the Minister said the project had other uses such as irrigation, fishing and tourism in the long term.

Mr. Adda said the project would also improve the power supply to the northern regions and puts Ghana in the position to supply power to neighbouring countries within the framework of ECOWAS. "The Bui Dam project is a dream come true for the people of Ghana," he said.

Mr Fan Juxiang, Chairman of Sinohydro, noted that the project was as important to the company as it was important to Ghana. He said the Chinese government supports projects in water resources and energy in Ghana and Sinohydro Company was implementing such projects.

Mr Juxiang expressed his company's willingness to share sophisticated technology with the Ghanaian people, urging his employees to participate in social activities in Ghana and make the wellbeing of Ghana their priority.

He called for early settlement of financial arrangements to enable the project to begin on time and assured Ghanaians of a high quality project.

Mr Afare Donkor, Ghana's Ambassador to China, noted that the project would take time once quality was the hallmark. Mr Antwi Darkwa, Director of Power at the sector Ministry mentioned one challenge of the project was the resettlement of about 1,700 people due to the environmental impact of the project, which would affect some parts of the Bui National Park.

He announced that the planned project completion was expected by February 2012.