[ 2012-05-02 ]

Dr. Kwabena Duffuor, Minister of Finance and Economic Planning

Ghana and Korea sign $122m agreements
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.

“According to this designation, Korea considers
unprecedentedly increasing ODA for Ghana’s
infrastructure building and socio-economic
development for the said period,” Mr Kyun said.

Source - GNA

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