The German Government has given Ghana 250 million Euros to upgrade and expand the country’s electricity transmission infrastructure.
The arrangement evolves from Germany’s Compact with Africa program, where the European nation has put in place a one billion Euro fund to boost the private sector in Compact countries, of which Ghana is one.
The Memorandum of Understanding was signed at the Jubilee House in Accra on Tuesday by CEO of the Ghana Grid Company (GRIDCo) and Sabine Dall’Omo, a representative of Siemens in the presence of President Akufo-Addo and the Chief Executive Officer of Siemens AG, Mr. Joe Kaeser.
The agreement is expected to provide funds to the government of Ghana to improve the electricity grid capacity and stability.
The MoU enjoins the two companies to collaborate to improve Ghana’s electricity grid capacity and stability and to ensure that the country expands its ability to export power to neighboring countries in West Africa, such as Burkina Faso, Togo and Benin.
President Akufo-Addo who was happy about the deal, said it was an important development in Ghana’s energy sector, adding that Ghana benefiting from the ‘Compact with Africa’ program, was a big vote of confidence in the country.
“…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,” said President Akufo-Addo
Ghana is the first country in Africa to benefit from a significant transaction from the ‘Compact with Africa’ program.
“We welcome that expression of confidence, and we want to assure you that it is not one that we will abuse. We, on our part, are determined to work in transparency and openness with you, to make sure that this project comes to a proper conclusion,” he added.
He said the project would inure immensely to Ghana’s industrialization drive that would be hinged heavily on reliable accessibility to power, pledging that Ghana would make sure that the project comes to the proper conclusion.
Mr. Joe Kaeser was confident that the agreement would enable Ghana modernize its grid infrastructure to bring power to the people in a more efficient way, and thus help Ghana build the country for the future.