Ghana, Germany Sign 250 Million-Euro Deal to Upgrade Power Grid
London, Jan. 16, 2020 (AltAfrica)–Siemens AG and Ghana reached a preliminary agreement to upgrade the nation’s electricity grid using 250 million euros of financing from Germany.
Siemens and Ghana Grid Co. will also use the funding to improve the country’s ability to supply other West African nations, including Burkina Faso, Togo and Benin, the Ghanaian presidency said in an emailed statement on Wednesday.
Memorandum of Understanding, to this effect, was signed at Jubilee House by Mr Jonathan Amoako-Baah, CEO of the Ghana Grid Company (GRIDCo), on behalf of the government of Ghana, and by Sabine Dall’Omo, a representative of Siemens, in the presence of President Akufo-Addo and the President and Chief Executive Officer of Siemens AG, Mr Joe Kaese
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The signing of the MoU has seen Ghana receive a quarter of the €1-billion fund put in place by the German government to boost the private sector in Compact countries, of which Ghana is one.
Under the agreement, the two companies will work not only to improve Ghana’s electricity grid capacity and stability, but also help ensure that the country expands her ability to export power to neighbouring countries in West Africa, such as Burkina Faso, Togo and Benin.
Witnessing the event, President Akufo-Addo described the signing ceremony as a very important development in the energy sector of the country, adding that: “The people from GRIDCo know, as well as I do, how necessary it is to undertake this project – the retooling, and refitting of our transmission and grid system across the country
With Ghana being the first country in Africa to benefit from a significant transaction from the ‘Compact with Africa’ programme, the President indicated that this “is, in itself, a big vote of confidence by the German leadership and Chancellor Merkel and yourself, one of the great German companies, to work in our country.”
The utility company, GRIDCo is crippled by debt and has struggled to meet financial obligations including a $170 million facility with the French Development Agency, its chief executive officer, Jonathan Amoako-Baah, said in November.
At the time, state-owned companies alone owed GridCo 976 million cedis ($171.9 million), forcing the company to suspend some projects, he said