Announcement of Three Million Five Hundred Thousand Dollar Credit to Ghana on August 14, 1969

INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 '~ . ' (: (I' . ..- ) \' I' I IDA Press Release No~ 69/28 Subiect: $3.5 million credit August 14, 1969 to Ghana A credit equivalent to US$3.5 million to the Republic of Ghana, announced today by the International Development Association (IDA), will help to finance the foreign exchange cost of extending the water distribution syste~ in the capital city of Accra and the neighboring port of Terna, and the installation of a sewerage system in Accra. The project will insure a dependable water supply by use of sur- plus water which is available north of Accra at the Kpong waterworks. The sewerage instailations will meet acute p-roblems cf collection a11u disposal of sewerage, and will also lay the foundation for a modern, expandable sewerage system in Accra. The IDA credit will be for a term of 50 years, including a 10-year period of grace, at no interest but with a service charge of 3/4 of 1% to cover administrative costs. Total cost of the project is esti- mated to be $5.9 million. The project will be administered by the Ghana Water and Sewerage Corporation (GWSC), a semi-autonomous agency established in 1966 with the assistance of the United Nations Development Programme (UNDP). The Republic of Ghana will relend the proceeds of the credit to GWSC at the rate of 6-1/2% per annum for 20 years, including a 3-1/2.year gr.ace period. The credit announced today would be the Bank Group's fifth finan- cing in Ghana. Two earlier Bank loans totaling $53 million assisted r f i /more t- • if' - 2 - the building and expansion of the Volta Hydrcelectric Project. Previous IDA credits were for the expansion of power distribution facilities ($10 million) and a highway engineering project ($1.5 million). - 0 -