Ghana begins dam despite worries

Ghana is to begin building a new hydroelectric dam that is hoped will solve the country's energy shortages.

The dam at the town of Bui on the Black Volta River is to cost more than $600m has been partly funded with a loan from the Chinese government.

Correspondents say concerns have been raised about the likely social and environmental impact of the project.

Other dams, in Akosombo and Kpong, have dried up significantly this year because of poor rains.

The country is the midst of an energy crisis and every four days everybody has their electricity switched off for more 24 hours.

Ghana's President John Kufuor has said the new dam, construction of which begins on Friday, should produce up to 400 megawatts of electricity.

Earlier this week, an oil exploration company said exploratory drilling off the coast of Ghana had confirmed substantial reserves of oil.

The Tullow Oil company said its latest work indicates that a shallow-water oil deposit is linked to a field in deeper water.

The company says three more wells will now be drilled and production could begin by 2011.