The Ghana Ministry of Energy and SinoHydro Corp. of China have initialed an engineering-procurement-construction contract for development of the 400-MW Bui hydroelectric project on Ghana’s Black Volta River.
Once approved by Ghana’s Cabinet, the US$594 million contract is to be signed formally by the parties in the middle of April.
The scope of the contract includes a power station, transmission line, an irrigation project, and environmental mitigation. The project includes a roller-compacted-concrete dam and three generating units totaling 400 MW.
The project is being funded by Chinese commercial credit and preferential buyer credit, SinoHydro said. Ghana and Chinese government agencies have held several discussions on loan matters, signing a loan memorandum in February. (HNN 2/12/07)
The formal loan agreement is under negotiation, with plans for the two governments to sign it in April, SinoHydro said.
In his state of the nation address February 8, President John Agyekum Kufuor outlined the efforts of his administration to secure sufficient electricity to end load shedding. At that time he noted a ï¿½high-poweredï¿½ Ghana delegation was in China to sign the financing agreement with the China Export-Import Bank.