The Government of Japan is to provide a grant of Yen 306 million ($2.6 million) to support Ghana’s Rural Electrification project in the Ashanti Region.

The fund is to be used for the procurement and installation of equipment and materials for the 33 KV transmission lines in the Amansie District under phase two of the project in that region.

Ten communities in the district with a total population of 16,000 are expected to benefit from the project which is to be completed in February 2005.

An exchange of notes to that effect was made yesterday by the Minister of Foreign Affairs, Nana Addo Danquah Akufo-Addo and Mrs Kazuko Asai the Japanese Ambassador to Ghana.

The Foreign Minister praised the government of Japan for the support in spite of the initial disagreement between the two countries when Ghana decided to adopt for the HIPC initiative.

He said the government and people of Ghana have always been grateful for the assistance Japan gives to Ghana in many sectors and expressed the hope that this will continue.

Nana Akufo-Addo pledged the determination of the government to ensure that the project is well maintained when completed.

Mrs Asai, on her part said, under the first phase of the project, which was completed in February this year, in the Nyinahin District, costing ?760 million is to benefit 39,000 people in 24 towns and villages.

She expressed the hope that the project, when completed, will enable the people to use electrical equipment in schools and hospitals and to set up small scale industries.