Financial services provider Standard Bank has arranged an international financing package for the development of a $126-million 60 000 m3/d desalination plant in Accra, Ghana.
Spanish infrastructure company Abengoa and the Sojitz Corporation of Japan, which were investors in the project, would contribute equity funding to cover 30% of the project costs, with the bank providing the balance of funding in the form of senior debt.
The plant would be constructed and run by Abengoa, which recently identified various opportunities in Africa.
The project would provide potable water to around 400 000 Accra residents, who had previously had limited access to clean water, Standard Bank head of power and infrastructure finance George Kotsovos pointed out.
He added that Standard Bank had been chosen as the lead financier because of its on the ground expertise, strong brand presence in Ghana and its competitive financing offer.
Standard Bank Group, with representation in 18 countries on the continent, and through its subsidiary Stanbic Bank Ghana, would also be able to continue servicing the project’s local financing and banking needs.
Further, as a result of the 12-year term of the project’s debt funding and the lack of mature funding mechanisms in Ghana, the World Bank had stepped in to perform project feasibility studies and to provide credit enhancement to underpin the long-term nature of the funding.
Standard Bank director of corporate and investment banking in Ghana, Kwamina Asomaning, said the project had the support of the government of Ghana, which also guaranteed the obligations of the Ghana Water Company.
He further noted that the provision of clean water would have far-reaching socioeconomic impacts, raising health standards and, therefore, contributing to increases in learning capability, labour productivity and longevity.
"This, in turn, further raises a community’s ability to pay for services.”