Standard Bank raises funds for $120m desalination water project in Ghana
The Standard Bank Group has arranged an international financing package to develop a $126-million sea water desalination plant in Accra, Ghana, the South African-based lender announced February 20, 2012.
The plant will have a water production capacity of 60,000 cubic metres a day.
According to the Bank, investors in the project – Spanish Abengoa S.A. and Sojitz Corporation of Japan are together contributing equity funding covering 30% of project costs while 70% of the project’s funding is provided by Standard Bank in the form of senior debt.
Standard Bank says it was chosen as the lead financier because of its ground expertise, strong brand presence in Ghana and its competitive financing offer.
The Bank indicated that its subsidiary, Stanbic Bank Ghana has the ability to continue to service the project’s local financing and banking needs.
The Group’s Head of Power and Infrastructure Finance, George Kotsovos in a statement said the sea water desalination project company, Befesa Ghana, will provide potable water for around 400,000 Accra residents who had previously had very limited access to clean water.
Standard Bank noted that because of the 12-year term of the project’s debtfunding and lack of mature funding mechanisms in Ghana, the World Bank had stepped in to perform project feasibility studies and to provide credit enhancement to underpin the long-term nature of the funding.
The plant will be constructed and run by Abengoa.
By Ekow Quandzie
INTERESTINGLY THE COST OF THE PROJECT KEEP INCREASING FROM $110 MILLION TO $120 MILLION AND NOW $ 126 MILLION WHERE DOES IT END GHANAIANS SHOULD MAKE SURE THIS DOES BECOMES HUGE PAY DAY FOR FOLKS WHO WANT TO MILK GHANA ESPECIALLY BARCLAYS, STANDARD AND OTHER BANKING INSTITUTIONS WHO THINKS GHANAIANS ARE STILL SLAVES WITH RESOURCES WHICH WILL FINISH ANYWAY. WHEN PRICES DROPS IT BECOMES WORTHLESS.