Sinohydro urged to complete Bui Dam on schedule
Vice President John Dramani Mahama has urged the management of Sinohydro, a Chinese company constructing the Bui Dam, to complete the power project, as scheduled in 2013.
He again asked the company to ensure the first generation of power by the end 2012 to address Ghana’s energy requirement.
Mr Mahama made the made at a meeting with the management of the Sinohydro Group Limited at the company’s headquarters in Beijing, China.
The construction of the dam is collaboration between the Ghana government and Sinohydro. It will be the third major dam in the country after the Akosombo Dam and Kpong Dam. The Bui Hydropower Plant is expected to generate 400 megawatt of power. The additional power will increase the installed electricity generation capacity in Ghana from 1920 MW in 2008 to 2360 MW.
The total project cost is estimated to be $622 million. It is being financed by jointly by the government of Ghana and the China Exim Bank.
The government has contributed $60million while the China Exim Bank has provided a concessional loan of $270 million at two per cent interest and a commercial loan of $292 million.
Both loans have a grace period of five years and an amortisation period of 20 years.
The Vice-President said there was increased demand for electricity in Ghana, while the suppyly of gas from the West Africa Gas Pipeline was unreliable.
“Ghana is experiencing disappointments in the West Africa Gas Pipeline”, he stressed.
Therefore, Mr Mahama said, there was the need for the Bui power project to come on-stream soon to address the country’s energy needs.
“We are anxious to have more power come as early as possible”, he said.
The Vice-President and his delegation had a useful discussion with the Exim Bank of China, regarding the financing of the project.
He expressed the hope that Sinohydro would execute quality project.
Responding, the Deputy President of Sinohydro Group Limited, Mr Sun Hongshui, reiterated the commitment of Sinohydro to executing the Bui power project according to specification.
He said Sinohdro paid special attention to the Bui power project because of its capacity to generate more energy to support Ghana’s economic development.
Mr Hongshui said Sinohydro would also be engaging in other projects in Ghana, including the construction of fishing harbours and landing sites and the Accra plains irrigation project.
Source: Daily Graphic