KPONG HYDROPOWER UPGRADE AND REHABILITATION

Promoter – Financial Intermediary

VOLTA RIVER AUTHORITY

Location

• Ghana

Description

The proposed EUR 45m investment loan from EIB and expected EUR 17m investment grant from EU will finance rehabilitation and upgrade of the 160 MW Kpong hydroelectric dam to better protect against natural disasters, particularly more intense rain in the Volta Lake Basin, from cross-border countries to the North down to the mouth of the river flowing into the Gulf of Guinea. The project includes upgrading slopes of upstream dykes and the 15 spillway gates at the dam generating station.

Objectives

The project, through the rehabilitation and upgrade of essential components protecting the Kpong dam against natural disasters, will ensure the safety and structural integrity of the dam, particularly to withstand heavy rain episodes, which are becoming more frequent in the region, affecting the Volta Lake Basin, from cross-border countries to the North down to the mouth of the river flowing into the Gulf of Guinea.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 62 million

Total cost (Approximate amount)

EUR 62 million

Environmental aspects

As a rehabilitation on an existing run-of-the-river dam, the project is not expected to result in significant environmental or social impacts, and no resettlement nor additional land use is foreseen. The project was screened in by the national competent authority as subject to a full Environmental and Social Impact Assessment. This assessment is being prepared and a first draft was submitted to the competent authorities and published for public consultation. A Climate Change Risk Assessment for Akosombo and Kpong Hydro Generating Stations and a Flood Risk Assessment and Management Plan are currently being prepared and will be used to apply further adaptation and emergency preparedness measures to the dams. The EIB will verify alignment of the Environmental and Social Impact Assessment and associated documentation with the EIB's Environmental and Social Standards requirements.

Procurement

As the promoter operates in the utilities sector as a public undertaking, public procurement procedures as set in the EIB's Guide to Procurement will apply. The promoter has to ensure that the project implementation will be done in accordance with the EIB's Guide to Procurement.

Status

Approved - 11/12/2024