GACL Gets $120m AfDB Loan

The Board of Directors of the African Development Bank (AfDB) has approved a $120 million corporate loan to support Ghana Airports Company Limited's (GACL) capital investment programme.

The loan, the first private-sector investment in Ghana's transport sector, is expected to facilitate the construction of a new terminal at Kotoka International Airport (KIA) in Accra, and the rehabilitation of other airports managed by GACL, including the Kumasi, Tamale, Ho and Wa Airports.

A statement issued by the bank said the total loan facility for the programme is $ 400 million which will be financed with corporate loans from AfDB and other development financial institutions, as well as commercial banks.

It added that the programme would support Ghana's ambition of modernizing vital infrastructure, as the country seeks to become a gateway to West Africa and a regional aviation hub.

Meanwhile, an estimated 1,600 jobs comprising temporary and permanent ones are also expected to be created during the period of the project.

The project aligns with both internal and external policies and strategies.

It supports the Ghana Shared Growth and Development Agenda, which emphasizes the need for rehabilitating and expanding infrastructural facilities, especially in the transport sector.

At the sector level, the programme falls in line with the priorities identified in the National Airport System Plan 2014.

The AfDB's financing would play an important role by providing the much-needed long-term finance, enforcing environmental and social standards and working to enhance the development impact of the project.