exception. This is also a project that has not been properly evaluated
for how climate change will affect it; should drought hit Ghana again,
this is likely to become a very costly white elephant project indeed.
GHANA : Bui Hydroelectric Project faces shortage in funding
October 11, 2011
The Bui Hydroelectric Project (BHP), which is anticipated to produce
some 400 mega watts of energy for the nation, requires extra financing
worth some $168 million, according to a pertinent document.
As per the document, the project had a monetary shortage chiefly due
to the unexpected impact of international financial crises along with
unexpected necessary works. The BHP, which was anticipated to be worth
some $622 million, was financed with a concessional credit of $263.5
million, a Buyer s Credit of $298.5 million from the Chinese
government and EXIM Bank respectively with a $60 million funding from
the Ghana government. These global events resulted in the inadequacy
of the budget provided for some line items in the Engineering
Procurement and Construction (EPC) contract and therefore a shortfall
totalling $168 million, stated the document.
The document divided the extra expenses under three main categories:
Price Contingency, Physical Contingency and Other Items. Energy
Minister Dr. Oteng Adjei had stated on October 6, 2011, that as part
of our continuing efforts to expand generation capacity to 5,000 MW in
the medium-term, additional capacity of 265 MW will be ready by the
end of 2012 through the completion and commissioning of one unit of
133 MW out of the 400 MW Bui Hydroelectric Project by December 2012.
The chief parts of the Bui Hydroelectric Power Project are a Roller
Compacted Concrete (RCC) gravity dam having a 5-bay spillway, and 3
penstocks in the middle of the dam; an energy generator at the edge of
the dam on the left bank; two rockfill saddle dams on the right bank;
a switchyard; 276 km of transmission lines; and a permanent bridge
downstream of the dam, as per the document. The project, separated
into two stages of execution, started from August 2007. Chinese
company Sinohydro Corporation is the contractor with the Bui Power
Authority involved in a monitory capacity.
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