General News of 2013-03-16

Japan to support energy sector with $16m grant

The Japanese Cabinet has approved a $16 million grant to support the power sector in Ghana, the President of the Japan International Cooperation Agency (JICA), Dr Akihiko Tanaka, has said.

During a courtesy call on President John Dramani Mahama at the Flagstaff House, Kanda in Accra Thursday, the JICA President said the agreement for the release of the $16 million grant which was approved by the Japanese Cabinet three days ago would be signed between Ghana and Japan by April this year.

The disbursement of the grant would begin by the end of the year.

Mr Tanaka was at the Flagstaff House to discuss issues of cooperation with the President.

Before the courtesy call, Mr Tanaka had signed a $37 million agreement with government representatives on agriculture and health.

Mr Tanaka said Japan had observed that power was a critical sector in Ghana's economy, for which reason it wanted to help Ghana address the challenges in the energy sector.

"The Cabinet of Japan decided to extend grant aid to Ghana to improve the capacity of distribution in Ghana," he said.

He said the agreement signed for the agricultural sector was to support small-holder farmers to increase food production and ensure food security in the country.

Mr Tanaka affirmed JICA's commitment for continuous support for and cooperation with Ghana.

Responding, President Mahama thanked the Japanese government for approving the $16 million grant to support Ghana's power sector.

He said the country had power deficit, leading to the ongoing power management.

Therefore, he said, the $16 million grant would go a long way in complementing the government's efforts at addressing the power situation.

President Mahama lauded Japan for extending the loan and indicated that loan facilities in the past supported the country's roads, bridges and other infrastructure development.

He said the support for the agricultural sector was also welcome, as it was in line with the government's programmes to increase food production and ensure food security.

On health, President Mahama said the government was implementing programmes to improve health delivery, with emphasis on reducing child and maternal mortality.

Therefore, he said, Japanese support for the health sector was significant, as it would support government programmes.

On Ghana-Japan relations, the President said the friendship had been long-standing and historic.

He said Japan had been a leading donor to Ghana for many years, noting that when Ghana became a heavily indebted poor countries (HIPC), it got its highest debt cancellation from Japan.

He said since then Ghana had come a long way, with a robust economy which had ushered the country into a middle-income status.

President Mahama said with the level of Ghana's development,it would not revert to HIPC.