Energy security is something not every country is fortunate to have. Even when the infrastructure exists, a lack of investment in maintenance, sub-standard building materials, and a lack of generation can put the grid at risk, leaving millions of people in jeopardy of not having power when they desperately need it. A lack of consistent energy can also handcuff the economy, the very driver of the revenue needed to support the development, operation, and maintenance of the energy system.
But when the investment can be found to cover the upfront cost of construction and maintenance, financing that can be too much for a government entity to bear, the results of that investment can have a powerful impact. An impact that can potentially provide generations with economic stability and energy security.
In 2016, WSP began working to execute the deliverables for the Ghana Power Compact, an agreement that would create a more secure, resilient, and affordable electricity system for the country. The Compact was signed in 2014 between the Ghana Government and the Millennium Challenge Corporation, a U.S. foreign assistance agency with a mandate of “…providing time-limited grants promoting economic growth, reducing poverty, and strengthening institutions.” WSP, along with project partners CPCS Transcom Ltd. and Econoler were awarded the contract to provide technical advisory services to MCC across the Compact.
The Compact involved six separate, but connected, projects:
- The ECG Financial and Operational Turnaround Project (EFOT);
- The NEDCo Financial and Operational Turnaround Project (NFOT);
- The Regulatory Strengthening and Capacity Building Project;
- The Access Project;
- The Power Generation Sector Improvement Project; and
- The Energy Efficiency and Demand Side Management Project.
Each project represents an important component of the Compact, delivering on the design, construction, operations, maintenance, and governance issues tied to the creation of a strong energy network.
Overcoming Challenges
There were a number of challenges faced during the projects, which spanned from the ocean-side city of Accra up into the northern part of the country. However, two issues in particular became recurring throughout the three-year construction cycle for the various substation and LV bifurcation projects.
First, outage management became an issue on multiple components of the projects. The timing of outages that were needed to install some equipment had to take into consideration the mitigation of negative social and political impacts. This interrupted the completion of some activities and ultimately led to a delay in the commissioning of three of the projects.
Second, for some of the projects there were delays in the supply of certain equipment, and the quality varied of some components supplied for the project. This issue was made worse by the onset of the COVID pandemic in early 2020, when the global supply slowed severely and added weeks, if not months, to the shipment of parts.
These delays, and the subsequent issues they created, brought additional challenges in ensuring the projects associated with the Compact were delivered within the contracted investment window. WSP supported the client and project partners to ensure the projects were ultimately completed on schedule by the Compact End Dat
Lessons Learned
In our role in providing technical assistance and oversight for MCC for the Compact, we were able to bring our experience from the challenges faced on similar projects, apply what was learned from these to the six projects on the Compact including construction oversight and operations, and ultimately provide a stronger end result for the Ghana Government.
It’s important to have a complete understanding of local working conditions: health & safety, approvals processes and timelines, systems for construction documentation and communication/collaboration between the parties executing the project. All of these can vary significantly from one jurisdiction to the next, even within the same country, and knowing these variations will play a big part in the ability to deliver a project on time and on budget.
There is also a need for clear expectations to be set on how a project is delivered, reviewed, monitored, and operated. Companies like WSP have significant expertise in the work we do, and communicating our best practices, which can then be implemented by local contractors, can improve the quality of the end product.
This extends to pre-construction works as well. Work done on important project elements in advance, such as utility location, right-of-way access, and equipment compatibility, are essential for timely project execution and risk mitigation.
International collaboration projects give team members a unique working environment. It provides the opportunity to work alongside new project partners and internationally based colleagues, understand how development is executed in other parts of the world, and allow team members to appreciate how to apply their knowledge in environments they are not used to.
Our team was successful in applying their knowledge to the Ghana Power Compact, working with MCC and project partners from Africa and Europe to create a more sustainable energy grid that will help grow the economy and provide new job opportunities for men and women throughout the country.
