ADF: US$ 50 million to Connect Power Grids between Ghana-Togo-Benin

Tunis, 4 April 2007 – The African Development Fund (ADF) is Ghana’s and Benin’s leading partner in implementing their power interconnection project, which it will finance at the level of 45,10 %. In this regard, the ADF Board of Directors today in Tunis approved a loan of 14.86 million Units of Account (US$ 22.4 million or 206.5 billion Cedi) in favour of Ghana and a loan of UA 17.39 million (US$ 26.2 million or CFA 13 billion) in favour of Benin.

The project seeks to reduce poverty in the ECOWAS region through increased access to modern energy services. The project also aims at increasing transmission capacity between Nigeria, Benin, Togo and Ghana for trading of electricity which will improve reliability of supply, reduce production costs and, during drought periods, meet shortfall in output of hydropower stations. The project will have the following outputs: 338 km of 330 kV single circuit line from Volta (near Tema) in Ghana through Momé Hagou in Togo to Sakete in Benin; extension of Volta 330 kV substation; a new 330 kV substation at Momé Hagou and extension of Sakete 330 kV substation.

The total project cost is estimated at UA 71.53 million, of which 45,10% have been mobilized by the ADF, which will finance the cost of the transmission lines in Ghana and Benin, the substation in Benin and project audits in Ghana and Benin. Studies have shown that a 330 kV transmission line interconnecting the electricity grids of Nigeria, Benin, Togo and Ghana would be technically feasible and would be a step towards the creation of the West African Power Pool, a unified electricity market covering the ECOWAS region.

The African Development Bank Group has been actively participating in the regional integration of the energy sector in ECOWAS member countries through the financing of nine multinational operations for a total amount of UA 85.15 million. The operations include the 225 kV Ghana – Côte d’Ivoire Transmission Line project completed in 1983 and the Dispatching Centre project for the control and operation of the transmission system of Togo and Benin completed in 1998. 1 Unit of Account = US$ 1.50472 = 13,893.6 cedi = 747.128 CFA Franc