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GHANA GRIDCOMPANY LIMITEDANNUALREPORT2018Backbone to Power Delivery
Contact DetailsAREA OFFICES1. AKOSOMBO AREAHead OfficeGhana Grid Company LimitedP.O. BOX CS 7979, Tema, GhanaTel: ( 233) (0) 30-3318700 /3318790Fax: ( 233) (0) 30 2676180 / 0303318720Email: gridco@gridcogh.comWeb: www.gridcogh.comHead Office: Off the Tema - AflaoRoad, TemaDigital Address: GK-0208-2247P.O. Box 77Akosomboakosomboarea@gridcogh.com( 233) (0)34-30204562. TEMA AREAP.O. Box CO 8289Temavoltaarea@gridcogh.com( 233) (0)289675451 /(0)2895571973. TAKORADI AREAP.O. Box EF 226Takoraditakoradiarea@gridcogh.com( 233) (0) 31-22922014. PRESTEA AREAP.O. Box 50Presteapresteaarea@gridcogh.com( 233) (0) 50 3343672 / (0)3343672206. TECHIMAN AREAP.O. Box 369Techimantechimanarea@gridcogh.com( 233) (0) 35 20913527. TAMALE AREAP.O. Box TM 1266Tamaletamalearea@gridcogh.com( 233) (0)37-20-24432 / (0)3720-22236 / (0)3720- 225138. BOLGATANGA AREAP.O. Box BG 633Bolgatangabolgatangaarea@gridcogh.com( 233) (0)38 209 65529. ACCRA AREAP.O. Box CO 8289Temaaccraarea@gridcogh.com( 233) (0)289675451 /(0)2895571975. KUMASI AREAP.O. Box KS 587Kumasi( 233) (0)32-2190003 /(0)24-6408885CONTENTSContact DetailsNotice and Agenda MeetingCorporate InformationGRIDCo at a GlanceOrganizational StructureBoard of DirectorsBoard Chairman’s ReportReport of the DirectorsManagement StaffChief Executive’s ReportCorporate GovernanceCorporate Social ResponsibilityOperational ReportBulk Customers and Wholesale SuppliersAudited Financial StatementsProxy Form2GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT234-56789-1112-131415-18192021-293031-7374
Notice and Agenda of The 10th Annual GeneralMeeting Of Ghana Grid Company LimitedNOTICE IS HEREBY GIVEN that the 10th Annual General Meeting of Ghana Grid Company Limited(GRIDCo) will be held at Holiday Inn, Accra on November 28, 2019 at 10.00a.m. to transact thefollowing business:1.To receive and consider the Financial Statements for the year ended December 31, 2018,together with the Reports of the Directors and Auditors thereon;2.To authorize Directors to appoint auditors to audit the 2019 Financial Statements and to fixthe remuneration of Auditors.DATED IN TEMA THIS 5TH DAY OF NOVEMBER, 2019.BY ORDER OF THE BOARDMONICA N. A. SENANU (MRS.)BOARD SECRETARYNOTEA Member of the Company entitled to attend and vote may appoint a proxy to attend and vote on behalf of the Member.A proxy need not be a Member of the Company.A form of proxy is provided at the end of this Annual Report. For a form of proxy to be valid for the purpose of the meeting, itmust be completed and deposited at the Registered Office of the Company, Off Tema-Aflao Highway (N1), P. O. Box CS 7979,Tema, not less than 48 hours before the appointed time of the meeting.GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT3
CorporateInformationBoard of DirectorsAmbassador Kabral Blay-AmihereChairmanMr. Jonathan Amoako-BaahChief ExecutiveMadam Dzifa AmegashieMemberMr. Kenneth Kwamina ThompsonMemberDr. Nicholas Kwabena Smart-YeboahMemberAir Vice Marshall Issifu Sakib KadriMemberHon. Naana EyiahMemberNana Kofi Nti MemberMr. Frederick Fredua AntohMemberSecretaryMrs. Monica N. A. SenanuRegistered OfficeGhana Grid Company LimitedGK-0208-2247P.O. Box CS 7979Off the Tema-Aflao RoadNear Tema Steel WorksTemaPricewaterhouseCoopers (Chartered Accountants)No. 12 Airport City Una Home 3rd Floor PMB CT 42Cantonments, AccraAuditorBankers4Universal Merchant BankCAL Bank Ltd.Ecobank Ghana Ltd.GCB BankGhana International BankStandard Chartered Bank (Ghana) Ltd.Stanbic Bank Ghana LtdBank of AfricaSociete Generale GhanaZenith Bank Ghana LtdBarclays Bank of GhanaGHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT
VisionTo be the modelelectricity gridCompany.MissionWe provide areliable grid fordevelopment.GoalTo achieve 99.99%reliability onthe NationalTransmissionSystem withfully automated,integrated andpaperless businessprocesses by year2019.Core Values - (RISE & Care)ResponsivenessExcellenceWe attend to internal and externalcustomer needs with focus, speed and skilland effectively engage our stakeholders.We strive to be outstanding in everythingwe do. We consistently create better waysof doing our workIntegrityCaringWe adhere to moral and ethical principles,as well as non-discrimination andtransparency in our service delivery.We are committed to act with compassionin all situations, to listen with respect; toemployees, customers and stakeholdersand to value their differences.SafetyWe are committed to the highest safetystandards and environmental practices.GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT5
GRIDCo At A GlanceGRIDCo was incorporated in December, 2006 toprincipally carry out the economic dispatching andtransmission of electricity from facilities of wholesalesuppliers to bulk customers and distribution utilitiesin Ghana and West Africa. GRIDCo has been licencedby the Energy Commission to exclusively operate theNational Interconnected Transmission System (NITS)and has operated and maintained the NITS sinceoperationalisation in August, 2008. GRIDCo was alsomandated in 2013, to use the Company’s assets toprovide commercial telecommunication and relatedservices with the excess capacity on its fibre opticnetwork.The Government of Ghana is the sole shareholder ofGRIDCo and is represented by the Ministry of Financeand the Ministry of Energy in its dealings with GRIDCo.GRIDCo transmits electricity to twenty seven (27)Bulk Customers and Distribution Utilities from nine (9)Wholesale Suppliers.OperationsThe Company’s maintenance and operationalactivities are carried out on about 5,965.83 circuitkilometres of high voltage transmission lines acrossthe country, which are mainly operated at 161 kV. Theother transmission voltages are 69 kV, 225 kV and 330kV. The transmission lines carry power from variousgenerating stations to sixty-four (64) substationsowned by GRIDCo.GRIDCo’s main assets include substations and relatedequipment, transmission towers and lines, systemcommunication equipment, lands, buildings andmiscellaneous assets.DepartmentsGRIDCo has twelve (12) Departments which arestructured to ensure that corporate goals andobjectives are accomplished in a cost effective andan environmentally-sustainable manner. These6GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORTDepartments are: Corporate Planning Engineering Projects Engineering Planning and Design Finance GRIDTel Human Resources & Services Internal Audit Legal Services and Board Secretariat Technical Services Northern Network Services Southern Network Services System OperationsOperational AreasThe Company maintains and operates the NationalInterconnected Transmission System (NITS) throughthe Southern Network Services and the NorthernNetwork Services Departments, which are furtherdivided into the following nine (9) Operational Areas.The Southern Network Services Department Areas areAkosombo, Tema, Accra, Takoradi and Prestea Areasand the Northern Network Services Department Areasare Kumasi, Techiman, Tamale and Bolgatanga Areas.RegulatorsGRIDCo’s Regulators include: Public Utilities Regulatory Commission (PURC) Energy Commission (EC) State Enterprises Commission (SEC) Environmental Protection Agency (EPA) Ghana Revenue Authority (GRA)
GPROJECTSENGINEERINGPLANNING& VELEGALSERVICES& BOARDSECRETARIATHUMANRESOURCE& ICESSYSTEMOPERATIONSTECHNICALSERVICESGHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT7
Board of DirectorsAmb. Kabral Blay-AmihereChairmanMadam Dzifa AmegashieMemberAir Vice Marshal IssifuSakib Kadri (Rtd) - Member8GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORTMr. Jonathan Amoako-BaahChief ExecutiveNana Akyereako Adjabinti I(Nana Kofi Nti) - MemberMr. Frederick Fredua AntohMemberHon. Naana EyiahMemberDr. Nicholas Smart-YeboahMemberMr. Kenneth KwaminaThompson - Member
BoardChairman’sReportGHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT9
Board Chairman’s ReportAmb. Kabral Blay-AmihereBOARD CHAIRMANDear Shareholder, Distinguished Ladies and Gentlemen,on behalf of the Board, I welcome you to GRIDCo’s 10thAnnual General Meeting and present to you, a summaryof strategic initiatives pursued in the 2018 financial year.an almost 50% decrease in Transmission Service Charge,which became effective 15 March 2018.Last year, 2018, marked ten (10) years since theoperationalisation of GRIDCo. It was a period of earnestconsideration of the achievements of GRIDCo andchallenges which had been surmounted. Since its inception,GRIDCo’s achievements include the implementation of theTumu Han Wa Transmission Project and the Accra 3rdBulk Supply Point Project, which significantly improvedreliability of electricity supply to the northern parts ofthe country and the Greater Accra Region . A new stateof-the-art System Control Centre was commissionedin 2013, to improve Supervisory Control and DataAcquisition (SCADA) for the dispatch of generating units.The Company also pursued the implementation of arobust telecommunication network in accordance witha Master Plan structured to enhance diversification intothe telecommunications market. The achievements andevents in the past ten (10) years have fortified our resolveto adopt more cutting-edge strategies to ensure businesssustainability.Manpower AuditFINANCIAL OPERATIONSPerformance Management & Employee PerformanceManagement System (EMPS)In 2018, our central interests included the financial andtechnical sustainability of GRIDCo in a financially volatileenvironment. The Board directed its focus on policieswhich will ensure judicious use of various limited resources.The year 2018 recorded a 16.67% increase in powertransmitted, that is, 15.96 TWh, compared to 13.68 TWhof power transmitted in 2017. This notwithstanding,the Company recorded a Net Loss of GHC114.3 million,representing a 268% rise in the loss of GHC31.1 millionrecorded in 2017. The increase in the Net Loss was a resultof a dramatic decrease in transmission revenue from GHC715.2 million in 2017 to GHC 490.2 million in 2018, owing to10GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORTHUMAN RESOURCES AND SERVICES OPERATIONSIn order to enhance operational efficiency of staff, theBoard commissioned a Manpower Audit of the Company.The Manpower Audit will enable an accurate assessmentof activities which will ensure that our organizationalobjectives, company policies and legal requirements aremet according to accepted practices and professionalstandards as well as to ensure that staff roles andrequirements lead to productivity.Management StaffThe Board approved the appointment of five (5) newManagement staff to head key engineering and technicalpositions in the Company. The new staff replaced Heads ofDepartments who retired in 2018. The positions filled werein the following Departments: Northern Network ServicesDepartment, Southern Network Services, EngineeringPlanning & Design Department, Engineering Projects andTechnical Services Department.The Board continued to drive up efficiency levels throughthe implementation of an Employee PerformanceManagement System (EMPS). The development of athree-tier System meant to replace an existing systemand provide a more effective performance managementprocess, was underway. Effective monitoring guidelineshad been developed to bridge gaps identified in thedevelopment and implementation processes in theCorporate and Departmental Scorecards. We continuedthe development of an Individual Scorecard PerformanceManagement System Policy document.
Board Chairman’s Report (Continued)TELECOMMUNICATION SERVICESDuring the period under review, the GRIDTel Business Unit madesome impressive strides. GRIDCo was granted a Licence by NationalCommunications Authority to operate the National Terrestrial FibreNetwork. The Licence permits GRIDCo to build, operate and maintaina nationwide terrestrial fibre optic cable network infrastructure onland and through terrestrial water bodies in Ghana. Comsys GhanaLimited also signed on as GRIDCo’s third Indefeasible Right of Use(IRU) Fibre Network customer in addition to existing customers,namely Vodafone and MTN.ENTERPRISE RISK MANAGEMENTWe continued to emphasize the prioritization of risk management.There was a noteworthy improvement in risk-awareness by staffand partners of GRIDCo in 2018. The rate of identification and timelyreporting of risks and incidents increased and risk managementstrategies were also implemented.OUTLOOKCurrently, GRIDCo is operating in a financially challengingenvironment, but we hope that with the appropriate interventions,the future of GRIDCo will be secure. GRIDCo is pivotal in thedevelopment of Ghana’s economy and as such, the Companyrequires an immense financial injection to ensure excellentoperations and a reliable grid for improved livelihood and businesses.We depend on the continued support of our Shareholder, as wehonour our obligations to financing partners.In the near future, we look forward to strengthening ourrelationships with stakeholders, to approved cost-reflective tariffsby the PURC, and a reduction in the level of indebtedness frommajor customers.CONCLUSIONGRIDCo continues to live out its mandate as the exclusive operatorof the NITS. The Board has guided Management to build a robusttransmission system in Ghana, built strong collaborations withnational and international stakeholders and sustained itselfthrough financially challenging times. Management, staff andour Customers must be rest assured that the Board will remainresolute in ensuring a robust, reliable and safe grid.The Companyalso pursued theimplementationof a robusttelecommunicationnetwork in accordancewith a Master Planstructured to enhancediversification into thetelecommunicationsmarket.We extend maximum appreciation to our Shareholder, theGovernment of Ghana for continuously supporting GRIDCo,particularly, whilst we address our financial challenges as aCompany. We are also grateful to the Board and Management staffwho have steered the affairs of GRIDCo from inception till its 10thAnniversary.Amb. Kabral Blay-AmihereBOARD CHAIRMANGHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT11
Report of the DirectorsThe directors submit their report together with the audited financial statements of Ghana Grid CompanyLimited (“the Company”) for the year ended 31 December 2018, which disclose the state of affairs of theCompany.Statement of directors’ responsibilitiesThe directors are responsible for the preparation of financial statements for each financial year, whichgive a true and fair view of the state of affairs of the Company and of the profit or loss and cash flowsfor that period. In preparing these financial statements, the directors have selected suitable accountingpolicies and applied them consistently, made judgements and estimates that are reasonable and prudentand followed International Financial Reporting Standards and complied with the requirements of theCompanies Act, 1963 (Act 179).The directors are responsible for ensuring that the Company keeps proper accounting records thatdisclose with reasonable accuracy at any time the financial position of the Company. The directors are alsoresponsible for safeguarding the assets of the Company and taking reasonable steps for the preventionand detection of fraud and other irregularities.Going concernThe directors have made an assessment of the Company’s ability to continue as a going concern and haveno reason to believe the business will not be a going concern for at least twelve months from the date ofthis statement.Principal activitiesThe principal activity of the Company is the transmission of electricity and commercial telecommunicationservices.ResultsThe directors in submitting to the shareholders the financial statements of the Company for the yearended 31 December 2018 report as follows:GH ’000Loss before income tax for the year is(156,776)to which is added income tax credit of42,482giving a loss for the year of12(114,294)to which is added restated income surplus account balance brought forward of454,885giving a balance of340,591to which is added transfer from revaluation reserve account of2,709leaving a surplus carried forward on income surplus account of343,300GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT
DividendThe directors do not recommend the payment of a dividend for the year ended 31 December 2018 (2017:GH Nil).Board of directorsThe directors who held office during the year ended 31 December 2018 were:Period 30 August 2017 to 31 December 2018Ambassador Kabral Blay-AmihereChairmanMr. Jonathan Amoako-BaahChief ExecutiveMadam Dzifa AmegashieMemberMr. Kenneth Kwamina ThompsonMemberDr. Nicholas Kwabena Smart-YeboahMemberAir Vice Marshall Issifu Sakib KadriMemberHon. Naana EyiahMemberNana Kofi NtiMemberMr. Frederick Fredua AntohMemberAuditorThe Company’s auditor, PricewaterhouseCoopers, has expressed willingness to continue in office inaccordance with section 134(5) of the Companies Act, 1963 (Act 179).By order of the board:Ambassador Kabral Blay-AmihereMr. Jonathan Amoako-BaahBoard Chairman Chief ExecutiveDate: October 29, 2019GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT13
Management StaffMr. Jonathan Amoako-BaahChief ExecutiveMr. Daniel AmarteyDirector, Southern NetworkServicesMr. Vincent BoachieDirector, Northern Network ServicesMr. Mark A. BaahDirector, System OperationsMr. Benjamin NtsinDirector, Engineering Planningand DesignMr. Ebenezer EssienyiDirector, Technical ServicesMr. John Owusu - AfriyieDirector, Engineering ProjectsWg. Cdr. (Rtd.) Samuel AlloteyDirector, Human Resourceand ServicesMrs. Monica N. A. SenanuCompany Solicitor / Board Secretary14GHANA GRID COMPANY LIMITED 2018 ANNUAL REPORTMr. Isaac K. AkessehDirector, FinanceMr. Richard NtimChief Internal AuditorMr. Kofi Okofo DarteyDirector, Corporate PlanningMr. George NipahGeneral Manager , GRIDTel
ChiefExecutive’sReportGHANA GRID COMPANY LIMITED 2018 ANNUAL REPORT15
Chief Executive’s ReportJonathan Amoako-BaahCHIEF EXECUTIVEDear Shareholder, Chairman and members of theGRIDCo Board, distinguished ladies and gentlemen, onbehalf of Management and staff of GRIDCo, I present toyou a report on the state of GRIDCo’s operations as at31 December 2018.FINANCIAL PERFORMANCE AND TARIFFThe operations of GRIDCo were influenced greatly by thefinancial situation which prevailed in 2018. There wasa 50% reduction in the approved tariff for transmissionGHANA GRID COMPANY LIMITEDAnnual report compared to the prevailing tariff in 2017.services,for the year ended 31 December 2018The Transmission Service Charge (TSC) was a majorCHIEF EXECUTIVE’S REPORTdeterminant of our financial performance. In 2018,Dear Shareholder, Chairman and members of the GRIDCo Board, distinguished ladies andgentlemen,behalf ofproposalsManagement and werestaff of GRIDCo,I present to youreport onthetwo(2) ontariffsubmittedto athePublicstate of GRIDCo’s operations as at 31 December 2018.Utilities Regulatory Commission (PURC) by GRIDCo. TheFINANCIAL PERFORMANCE AND TARIFFFebruary2018 tariff proposal resulted in the reductionThe operations of GRIDCo were influenced greatly by the financial situation which prevailedTherewas a 50% reductionin the approvedtariff for transmissionservices,comparedofinto 2018.theTransmissionServiceCharge(TSC) from5.004Gp/the prevailing tariff in 2017. The Transmission Service Charge (TSC) was a majordeterminantof our financial performance.whichIn 2018, two(2) tariffproposalsonwere 15submittedtokWhto 2.1507Gp/kWh,tookeffectMarchthe Public Utilities Regulatory Commission (PURC) by GRIDCo. The February 2018 tariff2018.proposal resulted in the reduction of the Transmission Service Charge (TSC) from5.004Gp/kWh to 2.1507Gp/kWh, which took effect on 15 March 2018.In 2018, a total of 15.96TWh of energy was transmittedon the transmission network. This represents a 11.53%growth over the 2017 figure of 14.31TWh. Out ofthis 2018 fi
Bankers Universal Merchant Bank CAL Bank Ltd. Ecobank Ghana Ltd. GCB Bank Ghana International Bank . services with the excess capacity on its fibre optic network. The Government of Ghana is the sole shareho
