Announcement of World Bank Support of Mining Sector Development and Environment in Ghana on June 13, 1995

The World Bank 1818 H Street, N.W., Washington, D.C., 20433, USA IDA News Release No. 95/78/AFR Contacts: Eric Chinje (202) 4734467 (Internet: Echinje@worldbank.org.) Sheela Reddi (202) 473-5091 MINING SECTOR DEVELOPMENT AND ENVIRONMENT IN GHANA The following is information on a project approved by the World Bank's Board. DATE: June 13, 1995 WORLD BANK GROUP SUPPORT: International Development Association (IDA)' credit: SDR 7.9 (USS 12.3 million equivalent). The IDA credit is for 40 years, including 10 years of grace; it carries no interest, but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. TOTAL COST: US$13.7 million equivalent OTHER PROPOSED FINANCING: Government of Ghana IMPLEMENTING AGENCY: Minerals Commission ESTIMATED COMPLETION DATE: December 31, 2001 PROJECT DESCRIPTION: The main objective of the Mining Sector Development and Environment Project is to support the development of Ghana's mining sector on an environmentally- sound basis. This will be accomplished by strengthening mining institutions and providing organizational support to small scale miners to encourage the use of appropriate technology. The project consists of two components: * Strengthening of Mining Sector Institutions. This component ensures that the institutional structure of the sector can adequately respond to the demands of a more competitive and growing mineral sector. It will focus on providing support to mining agencies, assisting them in the successful implementation of effective sectoral policy and legal and regulatory regimes, with particular focus on environmental factors. The component will also spur the development of new geological information to establish a robust pipeline of priority prospect areas to attract investors and enhance promotional capabilities for mine exploration and development. * Assistance to Small-Scale Mining Enterprises. This component consists of (i) a pilot testing of specific combinations of equipment to improve productivity and yields that are likely to be applicable to Ghana's small-scale mining conditions (Phase I); and (ii) dissemination of equipment and technology designed to expand the field testing of the equipment and processing procedures in an operational setting, including workshops and field demonstrations of the new equipment and processes to small-scale miners (Phase II). IDA (the World Bank's concessionary lending affiliate) credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The US dollar equivalent of the SDR of the IDA credit ref7ects the exchange rates at the time of the negotiations of the credit. Archives/Records Center, H B1-001 ( 1)