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World Bank approves $700m guarantee for Ghana gas project

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World BankThe Board of Directors of the World Bank today approved $700 million in guarantees for Ghana’s Sankofa Gas Project, the bank says in a press statement issued in Washington and copied to ghanabusinessnews.com.

The statement describes the guarantee as a “record investment” for a transformational project that will help address the country’s serious energy shortages by developing new sources of clean and affordable natural gas for domestic power generation.

The Board approved a unique combination of two guarantees for the Project – an IDA Payment guarantee of $500 million that supports timely payments for gas purchases by the Ghana National Petroleum Corporation (GNPC) and an IBRD Enclave Loan guarantee of $200 million that enables the project to secure financing from its private sponsors. Together, the guarantees are expected to mobilize $7.9 billion in new private investment for offshore natural gas, representing the biggest foreign direct investment in Ghana’s history, the statement says.

By Emmanuel K. Dogbevi

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