WB pledges more support to Ghana power sector
from MASAHUDU KUNATEH in Accra, Ghana
ACCRA – THE International Finance Corporation (IFC), a private sector arm of the World Bank Group, has signed a Memorandum of Understanding (MoU) with the Volta River Authority (VRA) to support private sector investment in Ghana’s power sector.
“IFC is committed to supporting the goals of the Ghana National Energy Policy to increase installed generation capacity over the next few years to meet the growing energy needs of Ghanaians,” said Richard Arkutu, IFC Manager: Africa Special Initiative for Infrastructure.
“By partnering with the Volta River Authority, we are able to identify the correct entry points for the private sector to have an impact on the country’s development goals in the electricity sector.”
According to him, IFC’s potential investments will be provided via a number of instruments including early stage project development funding under IFC’s InfraVentures project development fund; equity and senior loan participations; mezzanine and quasi equity participations; and mobilizing risk mitigation instruments such as World Bank Group partial risk guarantees and, Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group political insurance.
Chief Executive of VRA, Kirk Cofie said the deal would go a long way to improve the financial position of the Authority to help improve power generation in the country.
The Government of Ghana, as outlined in the Ghana National Energy Policy, has prioritized the increase of installed generation capacity in the country to 5 000 MW by 2016, in order to drive the country’s economic growth.
– CAJ News
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