Spanish firm Befesa seeks $203m insurance from MIGA for desalination project in Ghana
A Spanish company, Befesa Water Projects S.L. has applied for a Multilateral Investment Guarantee Agency (MIGA) guarantees for a period of 20 years to undertake a seawater desalination project in Ghana in the 2012 fiscal year.
According to MIGA, Befesa proposed for the guarantees on June 17, 2011 after it had a non-shareholder loan from the Standard Bank of South Africa for the project.
The insurance includes retained earnings and interest against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance, MIGA says.
“This summary covers an equity investment by Befesa Water Projects S.L. of Spain and a non-shareholder loan by Standard Bank of South Africa in the Befesa Seawater Desalination Project in Ghana… the investors have applied for MIGA guarantees totaling $203 million (including retained earnings and interest) for a period of up to 20 years against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance,” MIGA said.
MIGA says its Board will meet on August 18, 2011 to decide whether to approve the insurance package for the company or not.
“Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature,” it noted.
The project involves the construction and operation of a seawater desalination plant in Accra by Befesa Desalination Developments Ghana Ltd, a joint venture company of Befesa Agua Nungua (100% owned by Befesa Water Projects S.L) and its local partner Hydrocol Ltd.
The plant will be built on a 25-year build-operate-transfer basis and is expected to supply 60,000 cubic meters of potable water per day to the city of Accra.
Desalination is the extraction of salt from seawater to get purified drinkable water.
By Ekow Quandzie
Spanish firm seeks $203m insurance from MIGA for desalination project in Ghana
A Spanish company, Befesa Water Projects S.L. has applied for a Multilateral Investment Guarantee Agency (MIGA) guarantees for a period of 20 years to undertake a seawater desalination project in Ghana in the 2012 fiscal year.
According to MIGA, Befesa proposed for the guarantees on June 17, 2011 after it had a non-shareholder loan from the Standard Bank of South Africa for the project.
The insurance includes retained earnings and interest against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance, MIGA says.
“This summary covers an equity investment by Befesa Water Projects S.L. of Spain and a non-shareholder loan by Standard Bank of South Africa in the Befesa Seawater Desalination Project in Ghana… the investors have applied for MIGA guarantees totaling $203 million (including retained earnings and interest) for a period of up to 20 years against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance,” MIGA said.
MIGA says its Board will meet on August 18, 2011 to decide whether to approve the insurance package for the company or not.
“Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature,” it noted.
The project involves the construction and operation of a seawater desalination plant in Accra by Befesa Desalination Developments Ghana Ltd, a joint venture company of Befesa Agua Nungua (100% owned by Befesa Water Projects S.L) and its local partner Hydrocol Ltd.
The plant will be built on a 25-year build-operate-transfer basis and is expected to supply 60,000 cubic meters of potable water per day to the city of Accra.
Desalination is the extraction of salt from seawater to get purified drinkable water.
By Ekow Quandzie
Desalination is a very energy intensive operation. Disposal of reject water or waste stream from the process may pose potential environmental challenges and problems that Ghanaians do not want, given our lose environmental law enforcement to date. I strongly opose this proposed project. Ghana is better off piping and transferring fresh and safe sourcewater from Ada Foa to Accra, for minimal treatement and minimal environmental impact. I strongly urge the people of Accra to reject this project.
In as much as we talk about the “cost” of the plant, we should also have a positive outlook on the benefits we as a country stand to gain and what this plant will do for the area and its environs. I understand the fears of polluting the environment but i think we have grown past this stage to have to be hammering on issues concerning our environment. I believe the EPA is on stand-by to check on the activities of Befesa so as not to bring so much harm to the people of the Teshie community and surrounding areas.
We did not reject the oil drilling companies, so why reject the desalination plant.