OPEC Fund for International Development :: Press Release

Press Releases

 

Home   Search   Print

Press Release

Ghana receives support for rural health initiative with
US$8.5 million OPEC Fund loan

133/2005 December 21, Vienna, Austria
Press inquiries:

The OPEC Fund for International Development today signed a US$8.5 million loan agreement with the Republic of Ghana to co-finance the second phase of a project to construct healthcare facilities in some of the most deprived areas of the country. The scheme supports government’s aim to provide the population with affordable, comprehensive medical services.

Health indicators in Ghana are poor, as reflected in the county’s high maternal and infant mortality rates and predominance of communicable and non-communicable diseases such as HIV/AIDS, malaria and tuberculosis, as well as illnesses brought on as a result of under-nutrition.

In 1996 the OPEC Fund approved a loan of US$6.55 million to construct four fully-equipped and furnished community hospitals and 16 health centers and establish outreach services. The project was successfully completed and all facilities are operational. As a result of these achievements, similar works will be carried out under Phase II to expand coverage to additional needy areas.

The scheme will construct three 30-bed community hospitals and 20 primary healthcare centers across Ghana’s 10 regions. Each facility will contain operating theaters, laboratories and X-ray units and be appropriately equipped. Associated staff housing will also be built. Outreach services will be established in order to bring medical services to remote areas where clinics are unavailable. This will entail the purchase of four-wheel drive vehicles, capable of transporting medical staff and specialized equipment, especially for the provision of maternity and dental care. In addition, a training component for selected administrative and medical personnel is envisaged.

The Fund has extended 18 other public sector loans to Ghana. Of these, one was extended for balance of payments support, one provided debt relief under the Heavily Indebted Poor Countries Initiative, while 16 others supported projects in the transportation, national development banks, multi-sectoral, water supply and sewerage, health and education sectors. Additionally, three loans have been approved in support of private sector activities.

Today’s agreement was signed in Vienna by HE Dr. Kwame Bawuah-Edusei, Ambassador and Permanent Representative of the Republic of Ghana in Switzerland, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.

DATA SUMMARY
Project: Second Rural Health Services
Sector: Health
OPEC Fund loan: US$8.5 million
Lending terms: Interest rate of 1% per annum, with an annual service charge of 1% on amounts withdrawn and outstanding; maturity of 20 years, including a grace period of 5 years.
Borrower: Republic of Ghana
Executing agency: Ministry of Health

Implementation period: 3 years
Appraising agency: OPEC Fund
Loan administrator: OPEC Fund

Cofinancier: Government of Ghana

Total cost: US$10.5 million
Project description:

The project will comprise the following:

  • construction and equipping of three community hospitals, 20 health centers and staff housing;
  • procurement of medical supplies and vehicles; and
  • provision of training.