Ghana Gets Single biggest loan from the World Bank

....$220m FOR ROAD SECTOR

GHANA’S road sector development had a new lease of life yesterday when the government and the World Bank signed a $220 million loan agreement in Accra.


The agreement was signed by the Minister of Finance, Mr Yaw Osafo-Maafo, and the Country Director of the World Bank, Mr Peter Harrold (picture).


The loan agreement has a 40-year repayment schedule with an interest rate of less than one per cent.


Another credit agreement for $5.13 million in support of rural financial services was signed at the same ceremony by Mr Harrold and the Governor of the Bank of Ghana, Mr Paul Acquah.


Speaking after the signing of the agreements, Mr Osafo-Maafo said “the RSDP will be implemented in a regionally equitable manner, based on the fundamental objective of poverty reduction and economic growth”.


He said the project will include routine maintenance, rehabilitation, upgrading, reconstruction, traffic management and safety as well as institutional capacity building.

“The programme has identified the works and activities in each region and, therefore, the benefits of the improved road network will be spread across all the regions in the country,” Mr Osafo-Maafo said.


He said both commercial and social road users will benefit from improved road conditions and the introduction of a more sustainable approach to maintenance of truck, urban and feeder roads, under the programme.


With regard to the rural financial services programme, the minister said “the objective is to promote growth and private sector development, as well as further reduce poverty by broadening and deepening the provision of financial services in the form of savings and credit to the rural areas”.


He said the programme has been designed to provide a co-ordinated and multiple donor approach and support to the rural and micro finance sector in a holistic manner.


Mr Harold, on his part, said the massive building of feeder and rural roads is the biggest investment to enhance the productivity of the farmers and reduce their cost of transporting foodstuff.


Present was Dr Richard Kofi Anane, nearly appointed Minister of Roads and Transport.