ADF Supports Poverty Alleviation in Ghana with a loan of US $ 64 million

07/09/2005
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Tunis, 07 September 2005 – The Board of Directors of the African Development Fund, the concessional window of the African Development Bank (ADB) Group, on Wednesday in Tunis, approved a loan of 44 million Units of Account*, equivalent to US$ 64.23 million, to finance the second Poverty Reduction Support project in Ghana (PRSL-II).

The loan is intended to support the Government's economic reform efforts as outlined in its Poverty Reduction Strategy Paper (GPRS) for 2003-2007. To this end, it will contribute to providing budget support to the Government of Ghana to facilitate the implementation of the reforms outlined in the GPRS as well as help provide coverage for Ghana’s external financing requirements.

The loan will support policies under three broad components:

-  Improving the investment climate;

-  Supporting pro-poor pro-gender-equity policies;

-  Strengthening governance and public sector management.

The reform measures to be supported by the loan are designed to  improve macroeconomic stability and the investment climate,  support pro-poor, pro-gender-equity policies and strengthen governance and public sector management.

The first poverty reduction support loan of UA 34.5 million (about US$ 50 million) was approved in October 2003 and co-financed with the World Bank.

The ADB operations in Ghana started in 1973. To date, the Bank’s cumulative commitments in the country amount to US$ 710 million in 51 operations.

Project Information Sheet

- Executing Agency: Ministry of Finance and

Economic Planning, Accra.

Date of Effectiveness & duration:: 30 months

- Procurement: None

- Other Sources of Financing:

Canada  - US$ 13.28 million

Denmark   - US$ 1.72 million

E.U  - US$  30.68 million

IMF  - U$ 78 million

France  - US$ 8.67 million

Germany  - US$ 8.52 million

Netherlands - US$ 12.78 million

Switzerland  - US$ 7.9 million

U.K.  - US$ 64.4 million

IDA  - US$ 125 million

*1 UA = US$ 1,45984 as at 01/09/05

CONTACT: Magatte Wade – Tel.: +216 71 10 22 44 – E-mail: m.wade@afdb.org


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