Business

NEDCo boosts operations with loans, grants

Management of the Northern Electricity Distribution Company (NEDCo) has announced its decision to secure some concessionary loans and grants to be injected into its operations.

They made this announcement at a press briefing on Monday, March 11, in Tamale, where management indicated that acquiring the loan will aid the company and put them in the position to better serve customers.

On August 5, 2014, Ghana and the United States of America entered into a Millennium Challenge Compact, which provided for a grant of up to $498,200,000 to advance economic growth and reduce poverty in Ghana.

Out of the total amount, $54,101,650 was to be used to implement electricity improvement projects in some parts of NEDCo’s operational areas under the auspices of MiDA.

However, NEDCo missed out in the proposed grant and the grant has had to be re-directed elsewhere due to their inability to meet the conditions of the grant.

It is on the back of this that NEDCO has had to rely on other partners for loans and grants for their operations.

This is needed in order for the electricity company to meet the demand of customers and to become fully autonomous.

Management of NEDCO, therefore, stated at the press briefing that they are acquiring loans and grants from some five companies.

These companies include AB & David, which is offering $100 million with high prospects of raising more concessionary loans, Techno Electric & Engineering Company Ltd, offering $100 million and some other companies.

Management of NEDCO is assuring the general public – especially its customers – that the loans and grants when secured will be put into good use.

“You can be sure that the management will be very responsible in committing the company financially because we know too well that stable electricity supply is the backbone of the economy.”

Source: 3news.com|Ghana

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