S. Korea to finance Ghana's power grid expansion

SEOUL, July 27 (Yonhap) -- South Korea will provide a 70.3 billion won (US$67 million) loan to Ghana to help the African country expand its power grid, the finance ministry said Wednesday.
The Ministry of Strategy and Finance said that the soft loan will be used to build a 185-kilometer power transmission line linking substations between Prestea and Kumasi, two cities in western Ghana.
The loan, which will come from Seoul's Economic Development Cooperation Fund (EDCF), will carry an interest rate of 0.5 percent and can be repaid in 35 years after a 10-year grace period, the ministry said.
It is the biggest loan that South Korea has extended to an African nation through EDCF, the ministry added.
EDCF is a state-run fund aimed at assisting underdeveloped countries with building social infrastructure through loans that carry low interest rates.
The ministry said Seoul also plans to help Ghana establish an energy-efficient smart grid system that can be instrumental in resolving the country's chronic power overload.
A smart grid refers to a new electric transmission system that attempts to predict and intelligently respond to the behavior and actions of all electric power users connected to it.
"Improvements in power efficiency will likely bring a better life to Ghanaians and lead to higher industrial productivity," the ministry said. "The establishment of a smart grid is expected to contribute to boosting the country's power technology level."
The loan extension to Ghana is also likely to help South Korean companies to tap into the West African market for integrated power grids, estimated to reach $7 billion, the ministry added.
elly@yna.co.kr