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Mr. Ken Ofori-Atta (left) and Ambassador Kim Sungsoo show the documents after signing the 2020-2021 framework agreement between the Government of Ghana and the Government of the Republic of Korea. Image: EBOW HANSON
The government has signed an agreement with the South Korean government for concessional loans of up to $ 400 million under the Economic Development Cooperation Fund (EDCF).
The loans will be used to finance five key projects, including the Techiman Water Supply project, which is expected to cost $ 100 million; the $ 60 million COVID-19 emergency response program; the modernization of the Regional Maritime University (RMU) for $ 140 million and the improvement of the Lake Volta Transportation system, for $ 100 million.
The Minister of Finance, Mr. Ken Ofori-Atta, signed on behalf of the government, and the South Korean Ambassador to Ghana, Mr. Kim Sungsoo, signed on behalf of the Republic of Korea.
The funds will be disbursed between now and 2022.
Lasting relationships
Speaking at the signing ceremony in Accra yesterday, Ofori-Atta said that bilateral cooperation between Ghana and Korea dates back to 1977, when the two countries first established diplomatic relations.
Since then, he said, there have been several bilateral commitments between the two countries, culminating when the Korean government provided Ghana with appreciable support for the implementation of a number of development programs and projects.
Loan amount increase
He said the sum of $ 400 million was a 100% increase over the two previous framework arrangements (2014-2016 and 2017-2019) that received $ 200 million each.
He said the doubling of the amount was in response to a request from President Nana Addo Dankwa Akufo-Addo for a billion dollar support from the government of the Republic of Korea.
For the past three years, he said, the government had taken steps to create an environment conducive to the flourishing of the private sector.
“Tax reforms have been introduced, inflation and interest rates are falling and the exchange rate has also remained stable,” he said.
Transport and ICT
Mr. Ofori-Atta also noted that to accelerate economic growth and development, the government had developed an ambitious plan for the transport sector to provide the necessary and cost-effective foundation to make Ghana more competitive in this era of accelerated globalization.
“The goal is to develop an efficient, high-density intermodal transportation infrastructure that is interconnected and makes use of our vast bodies of water for both passengers and cargo.
“The government is also using ICT frameworks, such as computing resources, the Internet and mobile telephony, to enable business activities and services such as e-commerce, e-government, online social media, online teaching and for resource mobilization,” he said. .
With South Korea among the world’s highest ranked countries in ICT and innovation, he said, the government looked forward to that country’s support in developing Ghana’s ICT and transport sectors.
Nine projects funded
For his part, Mr. Sungsoo said that since 1990, EDCF in Ghana has funded nine projects worth $ 354 million.
These include the Wa Water Supply Development Project ($ 55.5 million), the Prestea-Kumasi Energy Improvement Project ($ 67.2 million), the establishment of the University of Environment and Sustainable Development ($ 90 million) and the Northern Ghana Rural Electricity Access and Infrastructure Project ($ 68 million), he said.
He expressed confidence that the five new projects in the framework would support Ghana’s health sector and economy and fuel a new wave of world-class developments.
“We are in a hurry, as President Akufo-Addo once said. The world is changing rapidly and Ghana should catch up with the pioneers as soon as possible and bring prosperity, well-being and happiness to the people of Ghana.
“Korea is proof of this effort and Ghana can do much better by avoiding the trials and mistakes that Korea made in the past,” he said.
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