The Ghana Grid Company (GRIDCo) has initiated a $353 million procurement process for the long-awaited Eastern Corridor power project, which will span the Volta and Oti regions.
The project, described as critical for stabilizing electricity supply in parts of eastern Ghana, will include the construction of new substations and the expansion of existing ones, paving the way for improved access to reliable power.
During a visit by Parliament’s Select Committee on Energy, GRIDCo officials detailed the scope and challenges of the project, noting its scale and financial requirements.
“These projects are not cheap projects; they are very expensive projects.
“So, we have prepared what we call the high-level cost estimates for those projects.”
Ghana Grid Company (GRIDCo)
GRIDCo said that the corridor will cover towns such as Asebe, Ho, Kajebi, Salaga, and Kpandai, while substations in Volta will undergo significant upgrades. New substations are also expected to be built in Salaga and Kpandai.
The company explained that while preliminary cost estimates have already been sent to the Ministry of Energy, the next step is to finalize the procurement process.
“We forwarded the same to the Ministry of Energy. They wrote back to us telling us to initiate the procurement processes.
“So now, the project costs about $353 million. And we foresee undertaking it in phases.”
Ghana Grid Company (GRIDCo)
Feasibility and Environmental Studies
Before Ghana can secure loans to finance the project, GRIDCo must complete feasibility studies and an environmental and social impact assessment.
These assessments will determine the true cost of the project and ensure that the construction aligns with both technical requirements and community welfare.
“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 all that, and how to evacuate safely, and the transmission line characteristics and all that.”
Ghana Grid Company (GRIDCo)
On the social side, GRIDCo emphasized the importance of resettlement and compensation for affected communities.
“The key thing there is the resettlement action compensation. Because once it’s a transmission line, you are taking people’s houses, people’s lives.
“Now, when the funding agencies come, first of all, they want to see how socially responsible you are before they’ll even give you the money.”
Ghana Grid Company (GRIDCo)
The project has already been transferred to GRIDCo’s Project Implementation Unit, which specializes in managing donor-funded initiatives.
The company has prepared a Request for Expression of Interest (REOI) to select consultants who will conduct the studies.
Once these studies are completed, major lenders such as the World Bank, African Development Bank (AfDB), and Agence Française de Développement (AFD) are expected to work with the government to arrange financing.
Because of the project’s scale, GRIDCo indicated that the rollout will likely happen in phases.
Completing feasibility and environmental assessments alone could take about a year, delaying the start of full-scale construction.
Regulatory and Financial Hurdles
Despite momentum on planning, GRIDCo acknowledged challenges related to regulatory approvals and financial clearance under Ghana’s Public Financial Management (PFM) Act. This law requires state-owned enterprises to secure approval before undertaking large-scale projects.
“The challenge here is that, currently, with the PFM Act, we need to seek approval, financial clearance, before you start any of these projects.
“And that is what our Deputy Chief Executive, Finance and Resources, is working on.”
Ghana Grid Company (GRIDCo)
Officials confirmed that procurement plans and financial strategies had been submitted for clearance, stressing their eagerness to fast-track the process.
GRIDCo remarked, “For us, we want to really try and start the Eastern Corridor project yesterday, because of the new timing,” signaling its urgency to push the project forward amid growing electricity demand in the country.
Once completed, the Eastern Corridor power project is expected to significantly strengthen Ghana’s transmission infrastructure, ensuring reliable electricity supply for households and industries across Volta, Oti, and beyond.
By working with international partners and prioritizing social and environmental safeguards, GRIDCo hopes the project will set a benchmark for sustainable energy development in West Africa.
With feasibility studies expected to begin soon and financing negotiations lined up with major lenders, GRIDCo’s $353 million Eastern Corridor project is now one of the most closely watched infrastructure initiatives in Ghana’s power sector.
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