Soloman Asamoah, CEO, Ghanaian Infrastructure Investment Fund
In a bid to preserve, protect and improve the quality of the environment, the Ghana Infrastructure Investment Fund (GIIF) has rolled out a policy that is focused on financing environmentally friendly projects.
The new policy, Social and Environmental Management System (SEMS), is to proactively identify and evaluate the social and environmental risks of projects before a decision is made to finance them and to monitor ongoing social and environmental performance after disbursement.
The document sighted by Goldstreet Business indicates that GIIF will carry out its investment activities with appropriate consideration for the environmental, social, health, safety and labor aspects related to the activities it finances.
GIIF will also comply with the requirements of international financial institutions to protect the environment and people; implement sound social and environmental rules and regulations; and identify, determine, and mitigate risks in all bank financing activities.
Last year, the Bank of Ghana launch the Sustainable Banking Principles which is meant to provide the guiding principles to underpin effective Environmental and Social Risk Management (ESRM) policy frameworks for banks.
In the case of the Terminal 3 of the Kotoka International Airport (KIA), GIIF’s financing contribution enabled the Development Financing Institution tranche of financing to reach closure through partnering with the African Development Bank and the Development Bank of Southern Africa.
GIIF is also involved in developing, expanding and investing in Takoradi Port with its partners, including introducing new paperless systems, docking for larger vessels and faster turnaround times.
GIIF will periodically review and revise the SEMS to reflect changes in the regulatory framework as well as best practice guidelines and to better suit the needs of its mission and clients.
The procedures of the SEMS are integrated with GIIF’s existing investment risk management procedure. In view of this, all activities considered for financing by the Fund will be subject to screening against a list of excluded activities, which GIIF will not finance, as well as the identification of social and environmental risks during project appraisal.
For effective implementation of the SEMS and to ensure that the risk review process is conducted in an efficient and timely manner, GIIF will soon develop guidelines to help relevant staff improve their ability to identify social and environmental issues and assess risks.
