The Board of Directors of the African Development Bank (AfDB) has disclosed that it has approved a $120 million corporate loan to support Ghana Airports Company Limited’s (GACL) capital investment programme.
A statement issued by AfDB stated that the loan which is 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.
The bank declared that 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 assured 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.
It is estimated that 1600 jobs comprising temporary and permanent ones are also expected to be created during the period of the project.
The project, Footprint to Africa gathered, aligns with both internal and external policies and strategies as well as 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 significant role by providing much needed long-term finance, enforcing environmental and social standards and working to boost the development impact of the project.