Ghana’s biggest substation nears completion

A 396 Mega Volt Amp (MVA) power distribution substation is nearing completion at Dawa near Ada in the Greater Accra Region.

The project, to be completed in December, will cost US$ 80million dollars and is estimated to serve the entire eastern corridor. It will become the biggest power distribution substation in the country.

Already, the Enclave Power Company (EPC) a subsidiary of LMI holdings, the company constructing the substation,is distributing 165 megawatts of power to over 60 industries at its substation within the Ghana Free Zones Board (GFZB) industrial enclave in Tema.

Construction works on the project started in September 2013 and completed in December 2014 at an estimated cost of $35 million.

An Executive Director of LMI Holdings, Mr Osei Badu told the GRAPHIC BUSINESS during a tour of the facility that, “electricity generation and distribution shouldn’t be the sole responsibility of the government alone but a collective duty of everybody”.

The substation is the largest in the country in terms of capacity and is the first of its size to be constructed and funded entirely from private sources.

Mr Badu said the construction of the 393 MVA substation at Dawa would serve as source of power distribution to the upcoming Dawa Industrial Zone project.

One-region, one-park

The Dawa Industrial Zone project on the Accra – Aflao Highway is one of four Regional Industrial Zones (RIZs) under construction by LMI Holdings, a diversified Ghanaian conglomerate with over US$200 million in assets and US$60 million in annual turnover.

The project consists 2,600 acre industrial park with adjoining residential developments.

The company is currently developing four RIZs across Ghana.

The development of these RIZ’s will complement the government’s one region - one industrial zone policy by creating regional hubs for medium to large-scale industry where infrastructure and services could be concentrated in order to achieve economies of scale.

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GFZB mandate

The Head of Estate and Enclave Development of the GFZB, Mr Kwame Nsiah Asante in a separate interview with the GB during the tour said, “the enclave hardly faces power cuts and even when there was a problem, it was rectified within hours”.

He said the GFZB enclave did not rely on the national electricity grid distributed through the Electricity Company of Ghana (ECG) because of the EPC’s private substation that distributed power directly from the Volta River Authority (VRA) to industries within its industrial park.

“During the power crises, the enclave didn’t experience power cuts because of the EPC’s relationship with The Ghana Grid Company Limited (GRIDCo) and VRA“, he said.

He said the GFZB was the intermediary between investors and power generators to ensure quality and reliable distribution to secure operations of its members and maximise output of all industries located within the Ghana Free Zone enclave.

He said Ghanaians had the capacity and resources to venture into export-oriented activities that would increase foreign exchange earnings but many were reluctant due to bottlenecks associated with establishing and operating industries such as land litigation and poor power supply.

The Free Zone Act 1995, (Act 504) gives the board the mandate to facilitate and promote both local and foreign direct investments. Act 504 also has in place effective regulatory and monitoring mechanisms to ensure compliance with the provisions of the Act and any other rules and regulations applicable under Ghana’s general trade and industrial regime.

The total value of exports generated under the Free Zones Programme from 1996 to December 2016 was $30.9 billion, while the board recorded $2.3 billion last year alone. — GB