Parliament of Ghana has approved a loan facility of €101,760,002 to finance the construction of a drainage and ancillary sewage system in Nima, between Kawukudi to the Odaw River Basin in Accra.
The project is expected to mitigate the perennial flooding in Nima and its environs by enhancing access to solid waste collection and drainage management services which are currently limited within the vicinity.This is a situation that contributes to the blockage of drains and results in flooding every year.The project is expected to be completed within 24 months and when completed, will also feature the construction of enhancement facilities such as green areas, shade areas, and rest and bike and walkways and play areas.
The amount for the project is made up of a term loan facility agreement between the government of Ghana (represented by the Ministry of Finance) and Standard Chartered Bank, London, backed by Eksport Kredit Fonden (EKF) by up to €91,375,307 and a commercial facility of up to €10,384,695.
The project entails a subterranean drainage system that will also improve environmental and sanitary conditions in the Nima community and its surrounding areas, as well as provide the community with public spaces that serve diverse needs of residents.
Contributing to the motion in the House was the Minister for Monitoring and Evaluation, Dr. Anthony Akoto Osei who indicated the actual project cost is only €90,000,000 with the remainder serving as a premium.He explained other related cost will see the total financing amount for the entire project being €101,760,002,
“The two facilities amounting to €101,760,002 is the request. The contract value, however, is €90,000,000 – a difference of €11million is the EKF premium that is typical of such loans,” he said.
Works and Housing Minister, Samuel Atta Akyea – in his submission to also support the motion, justified government’s decision to invest huge sums of money in certain infrastructural projects such as the construction of subterranean drains which are expensive to build, adding that it is a sure way of addressing the recurrent flooding situations that the city faces.
“Every year, serious amounts of monies are released for us to do desilting and concrete lining, and what I would call palliatives; they do not solve the problems. Subterranean drains are the way to go. This is the first major intervention in which government has seen the necessity to do subterranean drains. We are going to see for the first time serious drains with a lot of sewage underground to make for a neat environment,” he said.
Paa Kweku Eshun|Talksafrica.com