A rural electrification project in Ghana
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29th April, 2010

Govt Secures Loan For Rural Electrification Project

By Edmund Mingle
A rural electrification project in Ghana
A rural electrification project in Ghana

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The Government has secured a loan of 520million dollars to undertake a massive rural electrification project across the country.

More than 2,200 rural communities are expected to benefit from the project, which President John Evans Atta Mills says would be implemented vigorously to integrate rural communities into the national economy for rapid national development. 
  
President Mills, who announced this during his visit to Tamale, last week, said most of the deprived communities in the three northern regions would benefit from the project, which is a priority to the government.

As a major intervention in closing the development gap between southern and northern Ghana, he said that out of the total loan facility, 350million dollars secured from the United States of America EXIM Bank would be used to extend power to rural areas in the three northern regions.

President Mills stressed that connecting rural communities in northern Ghana to the national grid was critical towards exploring the economic potentials of the north to boost the national growth.

The project, which is part of initiatives to provide the requisite infrastructure in deprived areas, would also aid the agenda of the Savanna Accelerated Development Authority established to spearhead rapid development of the north which has huge economic potentials, but currently remains largely poor.

President Mills is optimistic that the project, which is due to commence on a large scale as the Energy Ministry completes preparatory works, will help to significantly reduce poverty since will would create an effective platform for brisk income-generating activities in rural areas.

“Through this and other support initiatives, the rural sectors would no longer be at the peripheral of the national economy, but would be adequately empowered to actively participate in economic activities,” said President Mills.

Koku Anyidoho, Director of Communications at the Presidency, providing further information sourced from the Energy Ministry, told the Times that the remaining 170 million dollars was secured from the Chinese EXIM Bank for rural electrification in deprived communities in other regions.

Among other objectives, he said the project aims at integrating rural communities into the larger national economy to boost Ghana’s capacity in agriculture development.

“This would help to boost modernization of agriculture in the country,” he said, adding that electricity was a major catalyst for vibrant investment and economic activities.

It is also to ensure that the necessary infrastructural facilities were in place to enable communities to utilise the numerous economic opportunities that the oil and gas sector would generate.

“The government is fully committed to this project, since rural electrification is one the key areas the Better Ghana Agenda will evolve,” he stated.
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