$60m to rescue Ghana from energy crisis

Accra, Feb.1, GNA - The International Finance Corporation (IFC), the private arm of the World Bank, has approved 60 million dollars out of the 200 million dollars needed for the development and expansion of the Takoradi Thermal Power Plant Phase II project, Ms Imoni Akpofure, IFC Ghana Country Director, said in Accra on Wednesday.

Addressing a joint press briefing with Mr Lars Thunell, IFC Executive Vice President, she said the Thermal Plant Phase II project would increase the national generation capacity by 110MW. She, however, expressed concern about the seeming delay on the part of Government on the money, saying "there has been back and forth talk since 2004 when the amount was approved," and expressed hope that this year the project would take off.


Ms Akpofure said a consortium of international development financial institutions and commercial banks had been put together to finance the development and expansion of the thermal power project. On current IFC investment support in Ghana, she said the corporation had expanded its investment services and advisory solutions portfolio in the country over the past two years.


IFC investment commitment, according to Ms Akpofure, stood at 162 million dollars in 13 projects, with a strong pipeline of new investments under development.


She said IFC provided a loan of 75 million dollars with additional 50 million dollars syndicated from commercial banks to Newmont Ghana Gold Limited Ahafo gold mine in the Brong Ahafo Region. The Corporation also provided a guarantee of 2.2 million dollars facility to The Trust Bank to offer medium-term lending to private schools under the Ghana Private School Support Programme an IFC initiative.


Currently 10 schools have received financing totalling 1.15 million dollars from The Trust Bank in addition to an advisory solutions programme to strengthen the schools' financial, managerial and educational capacities for an improved environment for private education.

IFC committed a loan of 30 million dollars to Barclays Bank, Ghana and a total of 15 million dollars to Merchant Bank and The Trust Bank for the support of development of export-oriented companies and Small and Medium Enterprises.


Ms Akpofure said Ghana had been targeted for accelerated expansion of the IFC Global Trade Finance Programme, which worked with local and international banks to support the extension of trade finance to underserved clients globally.


Mr Thunell said IFC's strategy in Ghana included supporting private provision of infrastructure, deepening the domestic financial sector, expanding opportunities for micro, small and medium enterprises borrowing through local financial institutions.


It also seeks to promote the development of non-traditional export and enhancing the business environment.


"We are committed to creating the opportunities in Ghana by increasing investments and advisory services across a diverse range of private sector business.

"From just 22 million dollars investment portfolio at the end of 2004 fiscal year, the Corporation's investment portfolio jumped to over 160 million dollars last year mainly due to the favourable economic conditions in the country."


Mr Thunell said the Corporation would continue to invest in key sectors of the economy including agribusiness, education, financial services, housing, infrastructure, manufacturing, mining and telecommunication.


As part of the visit, Mr Thunell toured AfroTropic Cocoa Processing Company within the Ghana Free Zones enclave and interacted with toddlers at the Star Avenue Early Childhood Development School.