Parliament has approved a loan facility of €101,760,002 to finance the design and construction of a drainage and ancillary sewage system in Nima, between Kawukudi and the Odaw River basin, in Accra.
The amount is made up of a term loan facility agreement between the government and Standard Chartered Bank, London, backed by Eksport Kredit Fonden (EKF) up to €91,375,307 and a commercial facility of up to €10,384,695.
The project, when completed, is expected to mitigate perennial flooding in the area by enhancing access to solid waste collection and drainage management services.
The project entails a subterranean drainage system that will also improve environmental and sanitary conditions in the community and its surrounding areas, as well as provide the community with public spaces that serve diverse needs of residents.
The 24-month proposed duration of the project will cover work to be undertaken on the already existing Nima drain in the Accra Metropolitan Area (AMA).
The Nima drainage project, when completed, will also feature the construction of enhancement facilities such as bike and walkways, green areas, shade areas, and play areas.
Contributing to the motion in the House, the Minister of Monitoring and Evaluation, Dr Anthony Akoto Osei, clarified that although the total financing amount for the entire project is €101,760,002, the actual project cost is only €90,000,000, with the remainder serving as a premium.
“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.
In supporting the motion, Works and Housing Minister Samuel Atta Akyea justified the 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. He added that it is a sure way of addressing the recurrent flooding situations the city faces.