Ex-post Evaluation

1. Outline of the Project

• 1-1 Background of the Project

  Ghana had enough electrical capacity to export electricity to neighboring countries as typified by the Akosombo Dam. However meanwhile, the construction of the domestic power transmission facilities had been delayed due to poor economic conditions, and the electrification rate was only around 20%. The government of Ghana aimed to bring electricity to all villages nationwide by 2020 in its 1989 National Electrification Plan. The first step in achieving this goal was to bring electrification to 58 district capitals, and the government of Ghana requested Japan a grant aid to take part in this step.

• 1-2 Project Overview

  The project construct a power transmission facility that connect the region downstream of the Volta River (Sogakope, Adidome and Ada Foah) to the existing nationwide electricity network in order to bring electricity to the three district capitals in these regions. Ghana’s implementing organization would continue to complete transmitting electricity to the towns and villages in the targeted region and the electricity distribution network to all consumers, thereby the livelihood of residents would improve and the local economies would be revitalized.

  • (1) Overall Goal

    Living standards are improved for residents in the targeted regions and local economies are revitalized.

  • (2) Project Purpose

    Three district capitals and twenty villages are electrified.

  • (3) Outputs

    Electricity transmission and distribution facilities connecting to the nationwide electricity network are built.

  • (4) Input

    Japanese Side:

    • 1,876 million yen (1993 I/II: 1,068 million yen, 1994 II/II: 181 million yen, 1995 II/II: 627 million yen)

    Ghanan Side:

    • Land and Facilities

2. Evaluation Team

3. Results of Evaluation

• 3-1 Summary of Evaluation Results

  • (1) Impact

    In addition to the three district capitals and twenty villages, 42 other villages were linked to the nationwide electricity network by 2002. A total of 9,400 electric meters were installed in the targeted regions, and it is estimated that about 60,000 benefited.

    As a result, all hospitals and health posts in the targeted regions were linked to the nationwide electricity network and medical services were provided 24 hours, leading to an increase in the number of patients. In three hospitals and one health post surveyed, after the electrification more medical supplies were procured and preserved—particularly vaccines—for long periods of time. Heating and electricity charges are not as expensive as power generation using diesel fuel, which improved the hospitals’ finances.

    Although the electrification rate for elementary and middle schools in the targeted region is only about 20%, all the high schools have electricity. This has made it possible for the high school students to use electric appliances in experiments and workshops, and has also led to progress in setting up computer rooms. The system for supplying water to the target region has also seen very significant improvements. The Ghana Water Company Ltd. built a water treatment plant in Sogakope and Ada Foah, supplying water from these points to ninety villages and towns, and electricity from the nationwide electricity network enabled their stable operations.

    Although many farmers are interested in developing irrigation facilities, only some farmers carry out irrigation using electric pumps, such as in large-scale commercial farms and in the government’s rice cultivation project. Not only has electrification increased production volume due to the use of irrigation water on commercial farms, but noise and exhaust gas have been eliminated now that diesel generators are no longer used. Furthermore, the stable electricity supply has reduced malfunctions in motors and processing machinery and electricity has offered safety overnight. Thereby it was confirmed that there was spill-over effects in the improvement of overall management. Despite these spill-over effects, there has not been much development in rural agricultural processing of products. Of the two salt manufacturing companies expected to be large electricity consumers, one has discontinued operations due to a land litigation problem and another has continued operations but with no sign of changes in the scale of production or management. Tertiary industries such as restaurants and general merchandisers have expanded their business, particularly in the municipalities. Some of the stores that opened after electrification were established by residents expanding their businesses, but the others were established by people moving from large cities such as Accra.

    A local FM radio started its service and supports social development activities such as announcements concerning educational programs and medical services. This is due to the stable supply of electricity enabling planned and regular transmissions and reception.

  • (2) Sustainability

    The stability of electricity supplied to the Asiekpe substation and the secondary Sogakope substation which are the feeder station for electricity from the national grid to the targeted regions is extremely high. Indeed, operating records at the Volta River Authority’s high-tension transmitting station indicate around 98% stability. Between 1998 and 2001, insufficient electricity caused by a drought led to nationwide scheduled blackouts, but since 2002 electricity has been supplied 24 hours. However, the records of the Electricity Corporation of Ghana show that the stability of the electricity supply to low-end consumers is 95% in Sogakope and 80-85% in Ada, indicating some blackouts. In general however, stability has improved every year and a comprehensive assessment would suggest that the project results are being sustained.

    After the project was completed, the Volta River Authority and Electricity Corporation of Ghana began to be decentralized and privatized (The Electricity Corporation of Ghana was privatized in 1997 and its name changed to the Electricity Company of Ghana, however the government holds all of its stock so essentially it is a government organization), but there was no change in function of electricity generation and distribution in the project’s target regions. The Electricity Corporation of Ghana established a new office in the Sogakope region in 1998, and the number of staff in charge of the target regions, including the office in Ada, increased from 38 (in 1998) to 50 (in 2002).

    The Volta River Authority is essentially in charge of maintaining the high-tension transmitters (66kV) and the upstream substations, and inspects the high-tension lines twice a year and the substation at least once a month. Lower tension power lines (33kV), substations and facilities for power distribution to individual consumers are maintained by the Electricity Corporation of Ghana, and it was confirmed that the transformers installed by public-sector organizations were updated to meet demands.

    It is understood by those involved that the problems with these two companies’ fiscal structure are caused by structural problems such as low electricity fees, a high delinquency rate for payments and the high rate of stolen electricity (Source: “Republic of Ghana: Project Formation Study (Rural Electrification)”, September 2001, JICA). This is further evidenced by the fact that expenditure reports of the Electricity Corporation of Ghana’s Ho Regional Office, which has jurisdiction over the project’s target regions, declared a deficit for four of the five fiscal years since 1997. This clearly shows that financial sustainability is very weak.

• 3-2 Factors that Promoted the Realization of Effects

  • (1) Factors Concerning the Planning

    In the targeted regions, the Self Help Electrification Programme (SHEP) was implemented in which residents are responsible for 90% of the utility poles while the government provides the remaining utility poles, the transmission equipment and materials and takes charge of the construction work in order to reduce the financial burden of the government. This leads to a dramatic rise in villages benefiting from electrification.

  • (2) Factors Concerning the Implementation Process

    N/A

• 3-3 Factors that Impeded the Realization of Effects

  • (1) Factors Concerning the Planning

    N/A

  • (2) Factors Concerning the Implementation Process
    • 1) Since the power lines in the Ada region are close to the ocean, they are easily damaged by the saltwater, and this often causes power outages in this region. The utility posts made of wood are also damaged occasionally by bushfires, which add an element of instability to the electricity supply in rural villages.
    • 2) One reason for the lack of significant progress in developing the agricultural processing industry is probably due to the type of transformers installed in the villages. Agricultural production equipment requires three-phase transformers as machines used in producing cornmeal, but some villages only have single-phase transformers.

• 3-4 Conclusion

  The project stabilized the electricity supply to 65 villages, including municipalities, with an estimated 60,000 beneficiaries. This is equivalent to about 40% of the current population of the target regions, and many residents are still waiting for electrification even five years after the project’s completion. The impact anticipated from electrification in these regions was particularly apparent in fields of health/medical, education, water supply and commercial sectors.

• 3-5 Recommendations

  The Electricity Corporation of Ghana requires cleaning the transmission facilities (this indicates pin insulators, the nonconductors of the transmitters) every month to stabilize the supply of electricity in Ada. In addition, the transformers in the villages should be switched from single-phase transformers to three-phase transformers when replacing them to encourage local agricultural producers and to enhance the spillover effects of electrification.

• 3-6 Lessons Learned

  Projects involving the construction of substations and high-tension power lines and connections to national grids will begin to reveal their effect when the villages and consumers in the targeted regions first have a grid. To accelerate the effects soon after the project is completed, consultations with the responsible institutions and implementing institutions should be held, and it is necessary to affiliate with other projects in charge of building grids in the targeted region.

• 3-7 Follow-Up Situation

  N/A