World Bank Arm Insures Ghana Seawater Desalination Plant Project

A Ghana seawater desalination project meant to benefit about 500,000 people is receiving $179 million in backing from the Multilateral Investment Guarantee Agency, the political risk insurance arm of the World Bank.

The Washington, D.C.-based agency said the investment would help provide 60,000 cubic meters of potable water a day to residents and businesses where supplies are irregular and quality can be spotty in the Teshie-Nungua area of Accra, the country’s capital.

Last month, Sojitz Corp. (2768) said a subsidiary, Daye Water Investment (Ghana) BV of the Netherlands, will take part in the desalination project with the Spanish company Abengoa SA, the first of its type in sub-Saharan Africa.

The MGIA coverage covers an equity investment and shareholder loan by Abengoa, an equity investment and shareholder loan by Daye Water, and a non-shareholder loan and interest-rate swap by Standard Bank of South Africa Ltd. against risks of transfer restriction, expropriation, breach of contract, war and civil disturbance.

About 4 million of Ghana’s 24 million populace live in Accra and the surrounding area.

To contact the reporter on this story: Randall Hackley in London at rhackley@bloomberg.net

To contact the editor responsible for this story: Randall Hackley at rhackley@bloomberg.net

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