Ghana To Lose $126.8m World Bank Loan

Out of about $1.4 billion approved by the World Bank to Ghana between April 2004 and March 2011 for the implementation of about 15 development projects in the country, the government could only manage to disburse about $533 million, representing about 38 per cent of the approved amount.

Generally, the loans are made available for disbursement within a period of between five and eight years after which they are closed, meaning they can no longer be accessed.

About $126.8 million of undisbursed loans to Ghana will be closed in less than two years, some of them earlier by the end of this year.

These figures are contained in the Implementation Status Results Reports of World Bank Assisted Projects in Ghana (Update 2) released by the bank in line with its new policy on access to information launched in 2010.

According to the report, the World Bank approved the highest amount of $425 million for the transport sector to improve mobility of goods and passengers by reducing travel time and transport cost. Out of the amount, $235.9 million has been disbursed pending the closing date of June 30, 2015.

Another $62 million was approved in April, 2004 for the implementation of the Second Urban Environmental Sanitation Project out of which $40.4 million has been utilised, leaving a disbursement gap of $21.6 million as the loan comes to a closure on December 31, 2011.

The project seeks to improve environmental health, sanitation drainage, vehicular access and solid waste management in a sustainable fashion, with special emphasis on the poor.

Out of $34.1 million approved for the Ghana Micro, Small and Medium Enterprise (MSMEs) Project in January, 2006 with the view to enhancing the competitiveness of MSMEs in Ghana, $12 million has been disbursed with two years left for the closure of the loan in June, 2013.

With regard to the Ghana Energy Development and Access Project aimed at improving the operational efficiency of electricity distribution and increase access to energy, $69.2 million has been disbursed out of the $160 million approved in July, 2007 with a closing date of November 30, 2013.

Another $5.5 million approved in July, 2007 for the energy sector to enhance rural energy access is up for closure in November, 2012 with $1.3 million disbursed.

The education sector received an approval of $71 million in March, 2004 with $64.3 million disbursed. The loan, which closes on October 31, 2011, is to support improved equitable access to and completion of basic education in deprived districts, as well as the quality of teaching and learning in basic schools.

On the National Health Insurance Scheme (NHIS), out of $13 million approved in July, 2007 to strengthen the financial and operational management of the NHIS, $3 million has been disbursed with about 17 months to close on December 31, 2012.

Still on the health sector, Ghana has managed to disburse $11 million from $25 million approved in July, 2007 to help improve health and nutrition services for children under two years and pregnant women in some selected communities. The closing date is March 31, 2013.

With access to $84.7 million approved in August ,2006 to enhance the generation of growth and employment by leveraging ICT and public-private partnership under the e-Ghana Project, the government has disbursed $19.1 million with three years remaining for closure on June 30, 2014.

On the Ghana Urban Water Project, $103 million was approved in July, 2004 to increase access to pipe-borne water in urban centres with emphasis on affordability and reliability to the urban poor. Out of the amount $57.7 million has been disbursed with the closing date of July 27, 2014.

Another $75 million was approved in June, 2010 to help expand access to, and ensure sustainability of water and sanitation services in rural communities with $2.5 million disbursed. The closing date is June 30, 2016.

Two new loans approved this year have not or barely been disbursed. They are $175 million for the Ghana Local Government Capacity Support Project and $38 million for the Ghana Oil and Gas Capacity Building Project.