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

To contact the editor responsible for this story: Randall Hackley at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.