The funds will cater for the modification of the systems from analog to digital, and ensure the refurbishment of all four generators and the changing of panels at the station.
Each generator could take about nine months to complete but engineers have assured that power supply will improve after completion.
The Kpong Generation Station at its peak has the capacity to provide about 160 megawatts of power.
It uses excess water from the Akosombo Dam to run its turbines but with the falling levels of water in the dam, the station is only able to generate 105 megawatts of power.
The low generation capacity can also be attributed to the ongoing rehabilitation works which has resulted in the shutdown of one of four turbines at the station.
Safety Officer at the station James Sowah told Joy News’ Keminni Amanor that the project will sustain the station for the next 30 years.
The project when completed will reduce carbon dioxide emission at the station and make the environment more friendly.
Resident Manager of the AFD Amélie July told Keminni Amanor she is impressed with the progress of the work being done at the station.
Government is sure the project will generate enough revenue to pay back the loan when repayment is due in five years.