Ghana, France Sign Two Financing Agreements

Ghana and France on Tuesday signed two separate financing agreements totaling 38.6 million Euros to enhance access to safe drinking water and improve urban transportation. The loan has a grant element of 1.6 million Euros and is repayable in 30 years with a one percent interest rate. The French Ambassador to Ghana Mr. Pierre Jacquemot and Mr Kwadwo Baah-Wiredu, Minister of Finance signed the agreements on behalf of their respective countries. Under the rural and small towns water and sanitation project, which is being financed at the cost of 18.6 million Euros, over 400,000 people in the Brong Ahafo Region are expected to benefit from improved water supply and sanitation. The project will involve the construction of boreholes, hand dug wells and piped system as well as the development and promotion of sanitation through the preparation of sanitation strategic plans for the 19 districts in Brong Ahafo and the provision of latrines and hand washing points. The Urban Transport Programme, the second agreement worth 20 million Euros, aims at overcoming traffic congestions in Accra and Kumasi metropolitan areas. It is part of a comprehensive 70 million euros programme being co-financed by the World Bank, the Global Environment Facility, the Ghanaian government and the French development agency, Agence Française de Développement. The project would improve mobility through traffic management, regulation of the public transport industry and implementation of a Bus Rapid Transit corridor in Accra. Mr Jacquemot said the two projects were in line with Ghana government's priorities to improve the lives of the people as contained in the Growth and Poverty Reduction Strategy. He said specific efforts needed to be made to boost water coverage and sanitation rate in Brong Ahafo to reduce the level of guinea worm infestation in the area as well as achieve the 76 per cent coverage target for 2015. Mr Jacquemot said traffic congestions, low travel speeds and higher transport costs hindered the performance of urban economy and aggravated living conditions in city centres. Mr Baah-Wiredu gave the assurance that the money would be used responsibly in the execution of the projects.