The Ghana Grid Company (GRIDCo) has announced the start of procurement processes for a major 161kV transmission project along the Eastern Corridor.
Director of Engineering at GRIDCo, Nicholina Yembilah, disclosed this during a press briefing on Thursday, September 25.
She explained that the project, which will extend from Asebe through Boho, Kajeibi, Salaga and Banda in the Eastern part of Ghana, will involve both the expansion of existing substations and the construction of new ones.
“So these projects actually are not cheap projects; they are very expensive projects,” she said. “We have prepared what we call the high-level cost estimates for those projects… We foresee expanding some substations in the Volta Regio [and] upgrading them.”
She noted that GRIDCo has already forwarded cost estimates to the Ministry of Energy, which has asked the company to begin procurement. The project is expected to cost about $353 million and will be undertaken in phases.
However, Ms Yembilah explained that before any loans can be secured by the government, feasibility studies as well as environmental and social impact assessments must be completed.
“The feasibility study gives us the true cost of the project in terms of the high-level designs they will do, and then the systems, the layout of the substations, and how to evacuate safely,” she said.
She stressed that the environmental and social studies are equally critical.
“The key thing there is the resettlement action compensation. Because once it’s a transmission line, they’re taking people’s houses, people’s lives. And now, when the funding agencies come, first of all, they want to see how socially responsible you are before they’ll even give you their money.”
According to her, the project has now been handed over to GRIDCo’s Project Implementation Unit, which manages donor-funded projects. A request for expression of interest is being prepared to select consultants to carry out the required studies.
After that, international lenders such as the World Bank, the African Development Bank (AfDB) and Agence Française de Développement (AFD) are expected to work with the government to secure funding.
She noted that due to the project’s size, GRIDCo plans to carry it out gradually, with some smaller interventions already being considered.
“Like Kpeve Substation, for instance, the Southern Network Services Director is here. He’s already asking us to install the transformer that is at that substation sitting there now,” she explained.
Ms Yembilah indicated that the full project is likely to begin in 2027, as feasibility and impact studies alone will require at least one year, saying delays could occur due to clearance requirements under the Public Financial Management Act.
“With the PFM Act, you need to seek approval, financial clearance before you start any of these projects. That is what our Deputy Chief Executive, Finance and Resources, is working on,” she said.