Ghana, Korea sign $122m loan agreements to boost water, power supply
Ghana and the Republic of Korea on Monday signed two loan agreements totaling $122.7 million to boost the supply of water and meet the increasing demand for electricity.
An amount of $55.5 million will be used to implement the Wa water supply system development project while $67.2 million is earmarked for the Prestea-Kumasi Power Enhancement Project.
The two loans have an interest rate of 0.5 percent per annum and the government is required under the deal to provide counterpart funding of 15% of the total project cost.
Dr Kwabena Duffuor, Minister of Finance and Economic Planning and Kyun Jea-min, the Korean Ambassador to Ghana signed the agreements.
Dr Duffuor said, the Wa water project would not only improve the existing water supply situation in the city but also help eliminate the incidence of guinea worm in the Wa municipality and its surrounding areas. The project is also expected boost socio-economic development of the area.
Dr Duffuor said, the loan for the power enhancement project would enable the Ghana Grid Company Limited to develop the 330kV Prestea and Kumasi Substations transmission lines, to meet the increasing demand for electricity transmission and distribution across the country.
Mr Kyun Jea-min said the signing of the agreements would open a new chapter for an upgraded Economic Development Co-operation Fund of the two countries.
He said Korea had designated Ghana as a priority country for official development assistance, including long-term loans and grants for the period of 2011-2015.
Source: GNA