BUDGET: Barge to provide power in August 2007

Accra, Nov. 16, GNA - The 125 MW Osagyefo Barge would start producing power by August 2007, Finance Minister, Mr Kwadwo Baah-Wiredu announced this when he presented the 2007 Budget Statement to Parliament on Thursday.

Similarly the Volta River Authority (VRA) is procuring a 126 MW power plant that would also become operational by August 2007. He said the Volta River Authority (VRA) and Mining Companies have concluded arrangements to procure an 80 MW power plant, which will be operational by April 2007.

Mr Kwadwo Baah-Wiredu said the measures were part of the medium term strategic goal for the Power Sub-Sector aimed to restore the power generating capacity of the country and also upgrade the infrastructure in order to improve the reliability of power supply.

He said the Ministry in collaboration with other entities would bring in other power generating facilities.

These include the procurement and installation of a 300 MW thermal power plant at Tema to be operational in 2008/9 and financing arrangements for the expansion of the Takoradi International Company (TICO) Power Plant by 110 MW is to be completed to enable construction to begin in 2007.

Mr Baah-Wiredu said the contracting arrangements for the Bui Dam Project would also be competed in 2007 to generate additional 400 MW thus increase the security of Ghana's power supply.

He said the on-going Distribution System Upgrade Project (DSUP) by ECG to be completed in 2007 would improve the reliability of power supply in some selected urban areas.

It is expected that the increased revenue collection would assist ECG to generate adequate revenue to finance their operations and implement its planned projects, Mr Baah-Wiredu said.

He said energy efficiency and conservation would be given a strong emphasis through the procurement of more CFLs to replace the one million incandescent bulbs as a first step, by the end of 2007. Mr Baah-Wiredu said the momentum which had been generated in the public education campaign on energy use and conservation would also be maintained throughout 2007 and beyond.

He said about 2,500 communities would be connected to the National Electricity Grid by 2011 under the SHEP-4 Programme and more than 200 of the communities would, however, be connected to the Grid in 2007. Mr Baah-Wiredu said the Power Sector Reforms, which was intended to facilitate increased private sector participation and financing of power supply infrastructure, was in its final phase of implementation. He said the full unbundling of VRA would be completed in 2007 with the establishment of a separate Electricity Transmission Utility (ETU). Further, the institutional reforms and Management Support Services arrangement in ECG would start in 2007.