ADB Approves Loan For Ghana

AFRICAN DEVELOPMENT FUND APPROVES A LOAN AND A GRANT WORTH 34.44 MILLION US DOLLARS TO FINANCE THE DEVELOPMENT OF SENIOR SECONDARY EDUCATION PROJECT IN GHANA.

TUNIS, 24 SEPTEMBER 2003 – The Board of Directors of the African Development Fund (ADF) has approved a loan of 20 million Units of Account (UA), equivalent to 27.55 million US dollars and a grant of 5 million UA, equivalent to 6.89 million dollars, for the development of senior secondary education in Ghana.

The overall sector goal of the project loan and grant is to contribute to the provision of uninterrupted quality education by increasing access and efficiency of Senior Secondary Education in deprived areas of the country. The project is intended to contribute significantly in the improvement of access to quality senior secondary education for Junior Secondary School (JSS) graduates; enhance HIV/AIDS and environment protection awareness and integrate their prevention into school life; as well as strengthen the management capacity and governance of the Ministry of Education at the central and decentralized levels.

The project will cater for the enhancement of the quality, efficiency and management of the Senior Secondary Education system, including conducting in-service training for teachers and inspectors; providing textbooks and teaching materials for the 25 senior secondary schools selected. The loan will provide for the rehabilitation and expansion of the core facilities such as classrooms, science blocks, vocational workshops, computer centres and administration blocks as well as the purchase of furniture and equipment; the setting up of a Maintenance Fund and project management.

It will also finance HIV/AIDS and environment issues awareness and sensitisation in the schools, enhance the management capacity of the Ghana Education Service of the Ministry of Education, establish a preventive maintenance system in Senior Secondary Education, and assist in the designing of a Computerized Selection and Placement System.

The total cost of the project is estimated at 27.78 million UA, equivalent to 38.26 million US dollars, made up of 15.03 million UA, equivalent to 20.70 million dollars (54.1%) in foreign currency and 12.75 million UA, equivalent to 17.56 million dollars (45.9%) in local currency.

The ADF loan and grant and the Government of Ghana will jointly finance the project. The ADF loan will finance 72 percent of total project cost consisting of 12.41 million UA, equivalent to 17.09 million dollars in foreign currency and 7.59 million UA, equivalent to 10.45 million dollars in local currency.

The two agreements bring the Bank’s total commitment in Ghana to 705.80 million UA, equivalent to 972.08 million US dollars. The Bank Group’s operations in Ghana started in 1973.

Executing Agency: Ghana Education Service, Ministry Branch Post Office, P. O. Box M. 45 Accra. Ghana.

1 UA = US$ 1.37727 as at 01/09/2003