Parliament approves Buyers Credit Agreement

Accra, July 9, GNA-Parliament on Thursday approved a Buyers Credit Agreement between the government of Ghana and BNP PARIBAS Bank of Belgium for an amount 67,608,000,00 Euros for the construction of the Ada Coastal Protection Works.

The project would be undertaken on contract with M/S Dredging International Services of Cyprus and International Marine and Dredging Consultants of Belgium.

The loan is to support the protection of approximately 14 kilometres of the shore line fronting the coast of Ada, to facilitate the development of the salt, fishing and tourism industry and at the same time protect the existing and future physical and social infrastructure development.

Mr James Klutse Avedzi, Chairman of the Finance Committee, which recommended to the House to approve the loan, said the Government with the financial support from the Dutch Embassy conducted an independent assessment study on the sea erosion problem at Ada and that formed the basis for sourcing for loan.

He said the study indicated that the project is technically feasible and economically viable and that it would protect the infrastructure development along the Ada coast from sea erosion. The committee, he noted that the project would help create economic opportunities for the people of Ada and the surrounding communities through employment generation and help curb the rural urban migration as well as attracting investors in salt production, tourism and fishing to the area.

He said the scope of works would include a groyne construction along the breakwaters, provision of rock production, dredging, and the provision of quarry products and engineering and consultancy services, including soil investigations, coastal modelling and specialist studies. The loan repayment period is over 8 years with a two-year grace period and a 1.6 percent interest per annum.