Africa, Asia and Oceania

China signs financing for Ghana’s 400-MW Bui

Officials of Ghana and China signed seven financing agreements September 3, including two for US$562 million in funding for construction of Ghana’s 400-MW Bui hydroelectric project.

Ghana media reported Ghana President John Agyekum Kufuor witnessed the signings in Accra.

One agreement is a concessional loan framework agreement of US$270 million for Bui Dam between the governments of Ghana and China. Another agreement for US$292 million in funding also was signed between Ghana and the Export-Import Bank of China.

Kufuor received confirmation in August of the release of the Chinese funds during a visit in Beijing with officials of Chinese hydro project builder SinoHydro Corp. (HNN 8/13/08)

Officials of Ghana and the Export-Import Bank of China last year signed a financing agreement providing an initial US$292 million for construction of Bui on Ghana’s Black Volta River. Ghana has paid its US$60 million financial obligation for the project.

Kufuor formally began construction of Bui Dam in a groundbreaking ceremony in August 2007. SinoHydro is building the project under an engineering-procurement-construction contract. Work is to be completed in 2012.

The total US$622 million project includes a power station, transmission line, an irrigation project, fisheries, tourism, and environmental mitigation components. Bui includes a roller-compacted-concrete dam and three generating units totaling 400 MW.