Active Mixed AidData Chinese Aid

CWE provides $162 million supplier credit for SHEP IV Rural Electrification Project in the Upper West Region

$162M USD

Funder	China International Water and Electrical Corporation (CWE)
Recipient Organization	Government of Ghana
Country	Ghana
Start Date	Feb 09, 2012
End Date	Jul 07, 2029
Duration	6,358 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`30085`

Grant Description

CWE provides $162 million supplier credit for SHEP IV Rural Electrification Project in the Upper West Region On February 9, 2012, China International Water and Electric Corporation (CWE) signed a $162 million supplier credit agreement with the Government of Ghana for the SHEP IV Rural Electrification Project in the Upper West Region.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: a 15 year maturity

📅 Maturity15 years

⏳ Grace Period5 years

The loan’s (principal) amount outstanding was GHS 549,200,000 ($98,071,428) as of December 31, 2020 and GHS 485,900,000 ($93,442,307) as of December 31, 2021 The purpose of the project was to facilitate the supply and installation of electrical materials and equipment — under the Government of Ghana’s National Electrification Scheme (NES) — to 600 communities in seven regions.

The project targeted 58 communities in Ashanti Region, 22 communities in the Central Region, 0 communities in Eastern Region, 27 communities in Greater Accra Region, 376 communities in Volta Region, 24 communities in Western Region, 66 communities in Brong Ahafo Region, 27 communities in Northern Region, 0 communities in Upper East Region, and 0 communities in Upper West Region.

China International Water and Electric Corporation (CWE) was the contractor responsible for implementation. In November 2011, a formal groundbreaking ceremony took place.

CWE reportedly built a total of 13,000 km of lines (435-kV, 33-kV and 11-kV) and connected about 468,000 households (more than one million people) to the national grid through the project.

📋 Staff Comments

This project is also known as the Upper West Electrification Extension Project.
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies the loan commitment year as 2011. AidData records the loan commitment year as 2012 because the supplier credit agreement was finalized on February 9, 2012.
The (principal) amounts outstanding are drawn from the Ghanaian Ministry of Finance’s Annual Public Debt Reports. These amounts are reported in GHS by the Ministry of Finance. AidData has estimated the USD amounts by applying the average GHS-to-USD exchange rate in 2020 (5.6-to-1) and the average GHS-to-USD exchange rate in 2021 (5.2-to-1).
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
2012004 is the ID assigned to the loan in the Ghanaian Auditor General Reports6. The Invitation Memorandum can be accessed in its entirety via https://www.dropbox.com/scl/fi/yutbinfygrud0aij3a3zd/215715-1.pdf?rlkey=crxo0uxgd7zkx8zaqe3g1d9fa&st=ejlism13&dl=0

📚 Sources & References

The Annual Public Debt Report for the 2022 Financial Year
The Annual Public Debt Report for the 2020 Financial Year
The Annual Debt Report for the 2021 Financial Year
Boosting the Power Sector in Sub-Saharan Africa
Parliament approves 162 million dollars loan agreement for electricity supply equipment
Controversy Over $162 Million Loan, 162 million dollar loan approved for electrification equipment
Appendix 1: Status of Primary Convergence - Ghana, 2017-Annual-Debt-Management-Report
Electrification of Upper West Region (EPC)
Annual Progress Report for the Year 2011
Electricity Supply Equipment Loan Agreement Approved
Appendix 8: Project Loans Signed in 2012, 2013_Budget_Appendix_Tables
Report of the Joint Committee on Finance and Mines and Energy on the Supplier’s Credit Agreement between the Government of Ghana and China International Water and Electric Corporation (CWE)
三峡集团中水电公司加纳上西部省电气化项目开工
Annual Public Debt 2023 F/Y Report
REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA (GENERAL GOVERNMENT) FOR THE YEAR ENDED 31 DECEMBER 2022
Chinese Loans to Africa Database
Ghana Invitation Memorandum Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.