The Ministry of Finance has signed a three loan agreement with the German government for 40.82 million euros (approximately 176 million Ghana Cedis) of which 22.82 million euros soft loan (approximately 98 million Ghana Cedis) would be use to build a 12megawattz of solar power plant in Kalio in the Upper West Region.
The second loan agreement of 13 million euros (approximately 56 million Ghana cedis) will increase the performance of the Ghana Audit Service (GAS) to ensure that all financial resources are fully spent for the purpose of planned programs and development activities.
The third loan agreement of 5 million euros (21.5 million Ghana Cedis) goes to the Ghana Revenue Authority (GRA) for the construction of an IT training institute.
The Deputy Minister of Finance, Hon. Mona Quartey said the Ghana Audit Service is expected to support the construction of 22 district offices, 3 regional Ghana Audit Service regional offices in Cape Coast, Koforidua and Ho.
This is expected to enhance the work of the GAS to reduce office accommodation problems and helping to better position the service to carry out its mandate as the supreme audit service of Ghana.
With regard to the GRA project, she added that it involve the construction of an IT training institute in Tema and forms part of the modernization of the GRA which is expected to support sustained improvement in the IT literacy within the Authority.
According to him, in respect of the renewable energy project, which would be implemented by the Volta River Authority (VRA) involves the establishment of 12MW solar power plant at Kalio for 8MW and Lawra for 4MW in the Upper West Region.
Mona Quartey said, this is line with the Renewable Energy Act 2011 (Act 832) which envisages the attainment of 10 percent of electricity generation mix from renewable energy sources by 2020.
She added that currently Ghana has about 3 percent electricity generation mix from renewable sources.
According to her, the financing terms of the facility includes that the grant element for both the GAS and VRA project is 54.5 percent whiles that of GRA is 68percent which is important for debt management.
The German Ambassador to Ghana, H.E. Christopher Retzlaff said Ghana is a strategic and key partner for the Republic of Germany in West Africa and the whole of Africa.
He added that the progress we have seen in democracy and market economy and economic development within the last 25 years is indeed remarkable.
They have four priority areas for investment that which includes the Economic Development, Good Governance, Agriculture and lastly Renewable Energy which was added lately.