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. This credit carries the following borrowing terms: a 15 year maturity, a 5 year grace period, and an interest rate of 6-month LIBOR plus a 0.8% margin. 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. 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 this project.

Additional details

1. This project is also known as the Upper West Electrification Extension Project. 2. 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. 3. 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). 4. AidData has estimated the all-in interest rate (1.557%) by adding 0.8% to average 6-month LIBOR rate in February 2012 (0.757%).

Number of official sources

9

Number of total sources

13