Ghana to get $ 90m loan from Japan

Accra (Greater Accra Region) 13 Oct. 1998 Ghana is to receive about 90 million dollars from Japan to finance road construction, rehabilitate a medical facility and boost irrigation under an agreement signed in Accra on October 13.

The agreement, which has a loan and grant components, was signed by Mr James Victor Gbeho, Minister of Foreign Affairs, and Mr Shosuke Ito, Ambassador of Japan in Ghana.

The loan component of about 80 million dollars will be used to finance the improvement of the Achimota-Anyinam section of the Accra-Kumasi Highway, about seven million dollars of the grant to rehabilitate the Noguchi Memorial Institute for Medical Research and the remaining to improve irrigation facilities in the country. Under the terms of the agreement, Ghana will pay back the loan in 30 years with a 10-year grace period. It attracts an interest of 1.8 per cent per annum.

Mr Gbeho, who described Japan's assistance to Ghana as "outstanding" said the improvement of the Achimota-Anyinam road will have a major impact on the flow of goods and services between the capital and the hinterland.

"An appreciable number of Ghanaians will no doubt earn better incomes as a direct result of this project," he said.

On agriculture, Mr Gbeho said the government has long recognised the need to boost production by relying more on irrigation than the unpredictable and fast-changing weather.

"But its dreams have frequently been frustrated by financial constraints," Mr Gbeho said, adding that the Japanese assistance will help boost food production.

Mr Ito said Japan's assistance to Ghana is in line with the long-standing co-operation between the two nations.

He said Japan wants to associate herself with Ghana's efforts to consolidate the economic gains secured in the past decade of reforms, which have laid strong foundations for accelerated growth under Vision 2020.

"In this regard, the achievement of these objectives will depend largely on your Government's commitment to the efficient use of available funds and the successful completion of all three projects," Mr Ito said. GRi