MIGA has given $179.2 million worth of investment guarantees for a seawater desalination project in Ghana. The project is expected to provide clean, safe drinking water to 500,000 residents in Accra when completed.
The political risk insurance arm of the World Bank Group in a statement November 7, 2012 announced it is supporting an investment that will supply 60,000 cubic meters of potable water per day to residents and businesses in the Teshie–Nungua area of Accra.
MIGA’s investment guarantees of $179.2 million, the statement said are covering an equity investment and shareholder loan by Abengoa Group; an equity investment and shareholder loan by Daye Water Investment (Ghana), BV of the Netherlands; and a non-shareholder loan and interest-rate swap by Standard Bank of South Africa, Ltd.
The agency indicated that the coverage is against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance.
“We’re very pleased to be supporting this investment that will supply water to Accra’s residents and provide technical know-how in seawater treatment to build capacity in the country,” said MIGA’s Executive Vice President, Izumi Kobayashi.
The plant will be built on a 25-year build-own-operate-transfer basis, according to MIGA and is expected to help bring Ghana a step closer toward its Millennium Development Goal target for water. Ghana is only one of four countries in sub-Saharan Africa on track to meet the goal despite investment challenges in the water sector.
By Ekow Quandzie