November 30, 2020

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Ghana, Korea Sign $400m Framework Arrangement

2 min read

Ken Ofori-Atta

GHANA AND Korea have signed a framework known as the 2020-2022 Framework Arrangement which will see the Korean Government committing $400 million in concessional loans for the implementation of some priority programmes and projects in Ghana’s education, health, transport and water sectors.

The 3-year funding cycle agreement was signed on behalf of government by Ken Ofori-Atta, Minister of Finance, while Kim Sungsoo, Korea’s Ambassador to Ghana, initialed on behalf of his country.

It comes after an agreement executed between 2017 and 2019 in which the Korea Government provided $200 million for the implementation of the University of Environment and Sustainable Development Bunso Campus Project, medical equipment for eight district hospitals projects, the Ghana Integrated Financial Management System ICT Project and the Northern Ghana Rural Electrification and Access Project.

Government and the Export-Import Bank of Korea are expected to conclude a number of programme and project loan agreements in order to access the $400 million resource envelope for the projects.

Korea is providing the package to Ghana under its Economic Development Cooperation Fund (EDCF) administered by the Export-Import Bank of the Korea Regional Office in Ghana headed by the Mr. Sang-Yun Lee.

Korea Eximbank has previously provided $354 million to finance, notably the Wa Water Supply Project ($55.5 million), Prestea-Kumasi Power Enhancement Project ($67.2 million), Buipe-Bolgatanga Petroleum Pipeline Project ($38.2 million) and the ongoing University of Environment and Sustainable Development (UESD), Bunso Campus Project ($90.0 million) among others

Mr. Ofori-Atta, reacting to the gesture, expressed gratitude to the government and People of the Republic of Korea and assured them that the Government of Ghana would ensure that the funds were judiciously utilized for the purpose for which it would be provided to spur the development of Ghana.

He spoke about government’s medium term outlook and the impact of the Covid-19 on the economy and mentioned that the ambitious GH¢100 million Covid-19 Alleviation and Revitalization of Enterprise Support (Ghana CARES) programme would be launched soon.

The Finance Minister also mentioned governments’ plans for the transport and the ICT sectors, and asked the Korean Government to consider investing in such sectors to make a lasting impact in the development of Ghana’s transport and ICT sectors.

On his part, Mr. Sungsoo expressed the hope that the support Korea was providing Ghana would help impact the living standards of Ghanaians and go a long way to deepen and broaden the bilateral relations between both countries for their mutual benefit.

BY Samuel Boadi

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