Parliament Ratifies 48.1 Million Dollar Facility To Finance On-lending Agreement

ghana_parliamentParliament has ratified the on-lending agreement between the Government of Ghana and the Ghana Water Company for a forty-eight-point-one million dollar facility to finance parts B and D4 of the Greater Accra Metropolitan Area Sanitation and Water Project.

The amount is under the one hundred and fifty dollar financing arrangement between Government and the International Development Association of the World Bank.

Presenting the report of the Finance Committee for approval the Chairman of the Finance Committee James Avedzi said the project when complete will contribute towards addressing key issues confronting the water supply sector and improved water supply to urban dwellers.

The project is expected to make potable water available to about two hundred and fifty thousand people in various assemblies in the region.

The facility is a concessionary credit with a 25 year repayment terms with an interest rate pegged at the prevailing Bank of Ghana policy rate.

Mr. Avedzi said the agreement is in line with government’s overall debt management programme to ensure that state enterprises pay for loans advanced to them by the government.

The Ranking Member on the Finance Committee and MP for Old Tafo Dr. Anthony Akoto Osei wandered whether the Water Company will be able to manage the exchange rate risk that is associated with the agreement.

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