Ghana Grid Company Limited (“GRIDCo” or the “Company”), the state owned electricity transmission company in Ghana (“Ghana” or the “Country”), is seeking to raise a corporate facility of up to US$170million to be utilized as follows (i) US$ 42 million for the development of an electrical substation in Tema, Ghana and the expansion of the existing Kpong – Volta transmission lines in south-east Ghana and (ii) refinance existing debt of US$128 million (together, the “Project”). IFC is considering a corporate loan of up to US$65 million for IFC’s own account to the Company and mobilize the balance depending on market conditions.

The US$ 42 million component will allow the Company to evacuate power from the 350MW Kpone Thermal Power Plant (“KTPP”), currently under construction by Volta River Authority (a state-owned electric utility, “VRA”), into the national grid. Construction is expected to take 12 months. The EPC contractor will be selected via a competitive bidding process (in accordance with the World Bank procurement guidelines). Post-construction, GRIDCo will be responsible for ensuring the operations and maintenance of the substation and transmission line. Evacuation of power from KTPP will be delivered to the national grid through the new 10 kilometer transmission from Kpone to the substation in Tema. The Electricity Company of Ghana (“ECG”) is expected to be the main off-taker of the transmission capacity.

The refinancing component of the Project will allow the Company to optimize its financial situation and prospects by elongating the tenor of the facility (commensurate with investment needs) and providing some liquidity relief which may be used to partially prepay other existing short term debt. This in turn will help GRIDCo implement an ambitious but much-needed long-term capital investment plan to upgrade and expand the national grid.