GHANA ENERGY DEVELOPMENT AND ACCESS PROJECT (GEDAP)

The Government of Ghana completed negotiations with the World Bank on the GEDAP during May 15 -17 2007.

The Ghana Energy Development and Access Project (GEDAP) seek to assist Government of Ghana in: (i) improving the operational efficiency of the electricity distribution system and increasing the population's access to electricity; and (ii) transitioning Ghana to a low-carbon economy through the reduction of greenhouse gas emissions.

The three components of the project are as follows:

Component A: Sector and Institutional Development

This component is critical for increased reliability of power supply and expanded access to electricity. Improvements in key areas of policy, such as the adequate pricing of electricity, and management improvements in the operations of the distribution system, should improve the performance of the power system, given Government of Ghana's new investment in power infrastructure.

Component B: Electricity Distribution Improvement

This component will focus on the upgrading of facilities necessary for access expansion, technologies to improve operational performance and a backlog of investments that normally would have been part of Electricity Company of Ghana's (ECG) preventive maintenance programme to preserve and improve operation efficiency.

Component C: Electricity Access and Renewable Energy

This component will support a new and multifaceted approach to expanding electricity access in Ghana tailored to geographical location, potential level of demand, and distance from existing grid. To stimulate market for off-grid systems the project will also introduce new financing systems and institutions to encourage the development of small, private energy businesses and make electricity access more affordable to customers.

Project Management

The Ministry of Energy (MOE) will be in charge of coordinating the overall project. Their responsibilities will include monitoring and evaluating the project's progress and the achievement of the project's development objectives, and the preparation of related reports. MOE will also ensure the implementation of the project's environmental and social management plans.

Other implementing institutions are Electricity Company of Ghana (ECG), Volta River Authority's Northern Electricity Department, Public Utilities Regulatory Commission (PURC), ARB Apex Bank and Energy Commission.

Funding Agencies

In addition to the World Bank's US$90 million: Swiss Economic Cooperation (SECO) will provide US$12 million to support ECG's Corporate Strengthening programme, access and capacity building for PURC and MOE; African Development Bank (AfDB) will provide US$18.25 million to support the activities in the project's distribution component. (This component is yet to be negotiated with AIDB); Africa Catalytic Growth Fund (ACGF) will provide US$ 50 million for access and distribution improvement; Global Partnership on Output Based Aid (GPOBA) will provide US$6 million for renewable energy development; and the Global Environmental Facility (GEF) will provide a grant of US$ 5.5 million: US$ 2 million for capacity building for MOE, PURC and the Energy Commission for the development of a renewable energy regulatory framework; US$ 3.5 million for capacity . building in the private sector and the Apex Bank to develop renewable energy projects.

Expected Benefits

The project will facilitate the replacement and expansion of transformers of communities to stabilize power supply and provide solar power as alternative source of energy to rural communities of subsidized rates.