The Japanese government has extended a grant of $13.4 million to Ghana to finance the project for the Stabilisation of Power Supply in Tamale City.
The grant will fund the construction of a primary power sub-station to help stabilise the power supply in Tamale and its surrounding areas.
The two-year project will involve the construction of a control room, the installation of transformers, and the establishment of interconnected sub-transmission lines in Tamale.
At the ceremony held in Accra on Friday to sign the deal, the Finance Minister, Dr. Cassiel Ato Baah Forson, signed the agreement on behalf of the Government of Ghana, while Suzuki Momoko, the Chief Representative of the Japan International Cooperation Agency (JICA) Ghana Office, signed on behalf of the Japanese government.
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Dr Forson expressed gratitude to the Japanese government for the support, noting that the project would improve power distribution in the Tamale Metropolis.
He reaffirmed Ghana's commitment to strengthening bilateral ties with Japan.
"Our doors are open, and we are ready to work with you to build on our existing cordial bilateral relationship," Dr Forson stated.
He appealed to the Japanese government to support the construction of the Volivo bridge in the Volta Region, describing it as a priority for President John Dramani Mahama.
He stressed the need to complete preparatory work so that the project could be included in the 2026 budget.
In her remarks, Ms Momoko described the Tamale project as symbolic and significant, highlighting its potential to strengthen diplomatic ties between Ghana and Japan.
She indicated that the project would be implemented by the Northern Electricity Company Limited (NEDCo) and be the second major power-related project funded by Japan, following the Power Distribution Project in Tamale and Sunyani in 2015.
She said the project, when completed, would improve power reliability in key areas such as the Tamale Central Market, Central Business District, Central Hospital, educational institutions, and neighboring rural communities.
"The project will help reduce the duration and frequency of power outages in Tamale, lower reliance on generators during blackouts and also reduce fuel costs and CO2 emissions, thereby contributing to environmental sustainability," Ms. Momoko stated.