A loan facility totaling $65.6 million (EUR 55 million) has been signed between Standard Chartered Bank (StanChart) and the Ministry of Finance.
The loan facility signed on Monday, March 15, 2021, will fund the asphalt overlay of 100km of feeder roads in Tamale, Walewale, Nalerigu, Gambaga, Damongo, and Yendi – all in the Northern Region.
The facility supported by Exportkreditnämnden (EKN, the Swedish ECA) and Swedish Export Credit Corporation (SEK), provides significant contribution to government’s commitments to major investments in road transportation infrastructure in the Northern Region and considerably enhances government’s efforts to boost socio-economic development of the country’s urban and rural communities by providing easier access to healthcare, education, employment and other social services.
Speaking at the signing ceremony, Mansa Nettey, Chief Executive, Standard Chartered Bank Ghana Plc said: “This transaction stays true to Standard Chartered’s brand promise, Here for good, and underscores our proficiency and capacity to provide solutions that contribute to Ghana’s socio-economic development. The Bank has operated in Ghana for 125 years and will continue to be a conduit for long term project and infrastructure financing that help Ghana achieve its Sustainable Development Goals.”
“We are extremely proud to reinforce our position as a reliable bank of choice to Ministry of Finance of the Republic of Ghana and to enhance our collaboration with EKN and SEK by closing this landmark infrastructure financing during such challenging times,” added Desislava Radeva, Director, Structured Export Finance, Standard Chartered Bank.
Director, Structured and Export Finance at QGMI, Marcio Jordao, also stated that, “Our participation once again reaffirms QGMI’s commitment with Ghana. This project, developed with the important support of Standard Chartered Bank, EKN and SEK, will promote the growth of the region economy and a better quality of life for the local population.”
The 100km feeder road network project will be developed by a Swedish EPC (engineering, procurement and construction) contractor and QG Konstruktion AB (QGMI).
After completion, the newly constructed road infrastructure is expected to help improve regional networks in the Northern Region and consequently increase the flow of business, agricultural trade and market access.
The transaction marks another significant ECA-supported term facility arranged by Standard Chartered Bank and signed with MoF Ghana during 2020. It follows the Bank’s $92.9 million (EUR 78 million) UKEF-supported financing for the construction of a new regional hospital in Koforidua, Ghana.
