Korea Ratings Corporation to carry out due diligence in Ghana

Accra, July 5, GNA - The Korea Ratings Corporation is carrying out due diligence in Ghana to facilitate the execution of the 200,000 housing units by STX Engineering Company.

As part of the exercise, a 16-member delegation from South Korea, led by Mr Doh Tae-Ho, Director General for Construction Policy of the Ministry of Land, Transport and Maritime Affairs, met with the Minister of Water Resources, Works and Housing, Mr Alban Bagbin in Accra on Monday. The team represents the sponsors of the project- Global Infrastructure Fund, an investment vehicle supported by the Korean Government.


The fund supports Korean contractors and financial institutions to strengthen their competitiveness in growing the overseas infrastructure market. Mr Doh said at the meeting that his country had committed 400 millio n dollars a year for the first phase of the 30,000 housing units meant for the security agencies.


The due diligence exercise include review of the proposed business plan, business conditions and project participants analysis, analysis of urban planning and financial analysis. It would also focus on marketability study, review of estimated revenue, and operating cost, financial validity study and risk analysis. Mr Bagbin described the visit of the team as timely since Parliament is committed to ratify the project by next week. He said he is meeting parliament and other stakeholders of the projec t such as Ghana Real Estates Developers Association to pave the way forward .. Mr Bagbin said the visit of the Deputy Korean Prime Minister, Mr Par k Young-June and the current delegation is an indication of the seriousness


the Korean Government attaches to the project and its growing relationshi p with the Government and people of Ghana.

He said Government is also committed to the project hence the establishment of the Project Management Committee and a Project Implementation Committee by his sector Ministry to oversee the smooth execution of the job.


He said the delay of the project was due to the processes involved to ensure that it becomes a national venture so that there would be no cours e of concern about "the investments of the Koreans and their investment returns". "Government would support you (delegation) and the Korea Ratings Corporation to get the assurance that the 1.5 billion dollars for the 30, 000 housing units would be available."


He said although other countries have expressed interest in investin g in the housing sector in Ghana, Korea had shown the way, adding that the market is already there for such investments.


Mr Bagbin said Ghana is contending with about one million housing deficit and is just not interested in houses but communities that are self-sufficient with markets, police stations, schools and other social amenities. Mr Bernard Kwabena Asamoah, Chief Executive Officer and Managing Partner of STX Engineering and Construction Ghana Limited, said his outfi t is capable of pre-financing the project due to the commitments made by t he Global Infrastructure Fund. Korea Ratings Corporation, which was established in 1983, is a leadi ng credit rating agency in Korea with capital participation from their busin ess alliance with Fitch Ratings since 2007. Fitch is a global rating agency committed to providing the worl d credit market with independent and prospective credit among other service s.