ADF approves £64m loan for Eastern Corridor road project in Ghana
June 29, 2019 – African Development Fund (ADF) has given its approval for a loan of $81.67m (£64.3m) to co-finance sections of the 695km Eastern Corridor road in Ghana.
The loan approval decision has been taken by the board of directors of African Development Bank Group (AfDB) at a meeting.
Other lenders for the project include: the Opec Fund for the International Development, the Ghanaian Government and the Japan International Cooperation Agency (JICA). JICA is also financing a connecting bridge across the Volta River.
The road links Ghana’s capital Accra with the northern hinterland and across the borders to the Sahel region.
The project, which will cost $113.27m (£89.4m), will cover 60km of roads, two interchanges and related civil works that will include community support initiatives which will improve the livelihood in the catchment area.
African Development Bank West Africa director general Marie-Laure Akin-Olugbade said: “This interconnectivity will enhance inclusiveness to stimulate socio-economic development, facilitate trade and promote regional integration.
“With this project we hope to turn rural areas from areas of economic challenges to economic prosperity and bread baskets.”
Marie-Laure Akin-Olugbade added that the project will address the needs of about 230,000 people and will impact the lives of more than 5.4 million inhabitants by reducing travel and transit time, support education and health services delivery.
The project will create about 1,500 direct jobs in the region. Upon completion of the project, the roads will be tolled and axle-weighing facilities will be provided to control overloading.
She further stated that the AfDB’s leadership role in transport infrastructure development in the country has stimulated interest and alliances with several development partners in the country.
AfDB board members stated that the project aligns with the bank’s 10-year strategy and three of the High 5 priorities, calling on the Ghana government to ensure that the project is successfully completed and is implemented sustainably.
In 2017, ADF had granted a concessionary loan of $39.01m (£30.8m) to fund the Savannah Zone Agricultural Productivity Improvement Project. The project will be implemented over a five-year period between 2018 and 2022.