Ghana Gets U.S. $185 Million From World Bank

GHANA HAS from the International Development Association (IDA) of the World Bank, secured US$185 million for the implementation of five critical projects, which would enhance the living standard of Ghanaian after their execution.

The programmes include the Ghana Energy Development and Access project, Urban Transport project, Small Town Water Supply and Sanitation project, Health Insurance project and the Nutrition and malaria control for Child Survival project.

In all, the energy sector took the chunk of the money taking $90 million.

Speaking at the signing ceremony in Accra, the Country Director of World Bank, Mr. Matts Kalsson said the agreement was to accelerate Ghana's growth into a middle-income status.

He was really happy that Ghana would achieve the millennium development goal on poverty by 2008.

He said World Bank has delivered its part and will want the government to 'deliver on what you said you will deliver".

On his part, the Minister of Energy, Joseph Kofi Ada said the money would be used to strengthen weak infrastructure results in the loss about 25% of electricity and the ineffectiveness of collecting tariffs.

With this support and support from others, he said Ghana will produce about 700 mw by the middle of next year to close the gap. Establishment of a Rural Electrification Agency and a Fund under the agreement will ensure that electricity is extended to the rural areas.

The Minister of Finance and Economic Planning, Hon. Kwadwo Baa Wiredu said the Ghana Energy Development and Access project in partnership with the government is to improve efficiency of electricity distribution system and the population's access to electricity as well as transitioning Ghana to a low-carbon economy through reduction of green house gases.

Part of the loan is to support Urban Transportation, Small Town Water Supply and Sanitation, the National Health Insurance Scheme and the Nutrition and malaria control for Child Survival.

The term of credit is 30 years with a grace period of 10 years. Service charge on the credit is 0.75% and a commitment fee of between 0.3 and 0.5% per annum.

The Finance Minister charges implementing agencies and officers to be guided by both Ghana and IDA systems that seeks to ensure appropriate use of public funds.

"The project should bring a difference in the lifestyle and wellbeing of the Ghanaian," he

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