GEDAP I Electricity Sector Reform and Extension

Project completed

The program aims at improving the performance of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) as well as financing electricity access in poor urban areas. The project is part of a larger program entitled Ghana Electricity Development and Access Project (GEDAP) led by the World Bank.

Country/region Period Budget
Ghana
05.10.2006 - 31.12.2017
CHF 16'380'000
Background

The electricity supply and distribution in Ghana is insufficient and unreliable. The public utilities in the electricity sector, including the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) run huge losses which are financed by the Government of Ghana and absorb urgently needed financial means. There is also a great demand from people to get access to electricity in particular in the poorer central region. On that background the Government of Ghana is speeding up the reform process in the electricity sector with the major objective to commercialize the operations of the state owned utilities.

Objectives

The overall objective of the program is the sustainable improvement and extension of electricity distribution at affordable prices and the promotion of commercial utility practices in the electricity sector in Ghana.

Medium-term outcomes

Under the component Management Support to electricity utilities (ECG and NEDCo):

- Collection ratios are improved

- Technical and non-technical losses are reduced

- Cost reductions are achieved

- Reliability and quality of electricity supply is improved

- Staff and management are enabled to effectively and efficiently manage their utilities

Under the component Technical Assistance to the Public Utilities Regulatory Commission (PURC):

- The PURC has improved the regulatory performance and is able to cope with the challenges induced by the sector reform processes

- A new and more appropriate tariff structure is established and accepted by the broad public

Under the component Poverty Oriented Grid Expansion:

- 135?000 people in the central region of Ghana gain access to cheaper and more reliable electricity

Results

Expected results:  

Under the component Management Support to electricity utilities (ECG and NEDCo):

- Operation and annual investment plans are prepared and implemented

- Management information systems and business processes are improved

- Staff and management is trained in workshops and on-the-job trainings

- Staff productivity and motivation are improved

Under the component Technical Assistance to the Public Utilities Regulatory Commission (PURC):

- Key staff of PURC has been trained in an international course on regulatory strategies

- At least one in-house training course has taken place about key issues in changing energy markets

- Tariff review and tariff impact analysis has taken place

- The broad public has been informed about regulatory issues, including tariff reviews, in radio and TV ads

Under the component Poverty Oriented Grid Expansion:

- Approximately 130 small towns and villages in the central region of Ghana are connected to the national electricity grid


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • International Development Agency


Budget Current phase Swiss budget CHF   16'380'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   234'280'000
Project phases

Phase 1 05.10.2006 - 31.12.2017   (Completed)