Parliament has approved seven loans, including a $200 million supply facility from the World Bank. The Ghana Digital Acceleration Project is counting on $200 million to cover all of its expenses.
In line with the 2022 budget, this facility is a part of the government’s international capital market plan (ICMP) to raise money for vital infrastructure projects like roads, energy, trains, and healthcare.
The facility’s proceeds will help the government reach its income targets and improve its liability management.
The Bank of Ghana’s (BoG) assets have dropped from $9 billion to $3 billion, and this deal between the government of Ghana and the African Export-Import Bank (AFREXIMBANK) is anticipated to provide the necessary foreign exchange to build them up.
According to a report submitted by Finance Committee Chairman Kwaku Kwarteng, who yesterday moved the motion for Parliament’s approval of the loan, the money would be used to build the $200 million Ofankor-Nsawam road, the $75 million Ejisu-Konongo road, and the $10 million Nsawam-Apedwa road.
The construction of the Kwabenya-Peduase road (at a cost of $10 million) and the completion of Eastern Corridor Lots 5 and 6 (at a cost of $70 million) are the other two items on the list. The Suame Interchange and local road projects cost $47 million.
The other three are the African Games stadium infrastructure building ($140 million), the purchase of rolling stock and spare parts ($30 million), and the Enkyikrom-Adawso road project ($98 million).
Reasons for the Loan The report states that the loan facility was required after the administration decided not to raise finance through the capital market until the economy improved.
In the meantime, the governments of Ghana and Japan have signed two memoranda of understanding (MoUs) to increase their ability to produce rice seeds and to provide scholarships for human resource development, respectively.
These accords are a major milestone in the development of the economic partnership between the two countries, which will allow them to better capitalise on their complementary capabilities to achieve their shared goals.
President Nana Addo Dankwa Akufo-Addo, speaking to the press after the bilateral meetings, emphasised the value of partnership between Ghana and Japan in addressing a variety of global issues, including poverty, migration, terrorism, and climate change. The president reaffirmed Ghana’s commitment to maintaining close ties with Japan in order to further mutual goals of regional and international peace and security.
