AFD supports Ghana’s energy, agric and urban devt sectors

The Kpong Hydro Dam

The Kpong Hydro Dam

AFD, a public financial institution and the main actor in France’s development policy says it is providing a non-sovereign loan of €173.9 million to GRIDCO for the construction of a 330 kV line from Kumasi to Bolgatanga and a simultaneous upgrade of the Volta-Achimota-Mallam line around Accra.

 

The construction of the 330 kV line from Kumasi to Bolgatanga aims at replacing the existing 161 kV line.

 

In addition to that, AFD said it had provided a sovereign loan of €50 million, on-lent to VRA, for the retrofit of Kpong dam’s four turbines, allowing VRA to secure 160 MW of clean hydroelectricity for the next 30 years.

 

“The loan has also provided VRA with an efficient financial model. The last component of the loan is the funding of feasibility studies for a multi-purpose dam that would be installed in the Upper East Region (Pwalugu),” said a statement issued by the agency in Accra yesterday.

 

Under its Ghana Urban Management Pilot Programme (GUMPP), AFD said it was providing support to three Metropolitan Assemblies (Tamale, Kumasi and Sekondi-Takoradi) and the Ho Municipal Assembly, to enable them tackle some of the challenges of urbanisation.

 

“Some of these priority investment projects are market infrastructures, abattoirs, a social centre, lorry parks, community upgrading, as well as street naming and addressing, spatial planning,” AFD said.

 

Additionally, AFD is providing €37.5 million for the upgrade of major road and drainage infrastructures in Kumasi comprising a section of the Kumasi bypass road (nearly one kilometre), a section of the Lake Road (two kilometres) which is a major access road and a section of the downstream portion of the Aboabo drain (two kilometres).

 

According to the statement, AFD has also been in the agricultural sector with its supports to the development of oil palm and rubber plantations over the years.

 

“Currently, AFD is financing the fifth phase of the Rubber Outgrower Plantation Project (ROPP) with €17.7 million non-sovereign loan to ADB.  It is aimed at developing more than 18,000 ha of rubber plantations at the end of the project.

 

“It is based on a tripartite agreement between ADB, as the financial operator; GREL, as the technical operator; and ROAA (Rubber Out-growers and Agents Association) representing the interest of the farmers,” it said.

 

AFD is now expanding its scope of activity by exploring new fields, with the aim of increasing the links between the North and the South, in both directions. The agency’s action in the field of governance is experiencing rapid growth, with over €900million of commitments in 2017.

 

“Here in Ghana, AFD and the government of Ghana are currently working together on State-Owned Enterprises’ corporate governance framework which will enable the latter to be eligible to borrow funds for development projects on their own balance sheet,” the statement said.

 

 

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