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World Bank Injects Fresh $517m into Ghana’s Oil & Gas Project

By Modupe Gbadeyanka

A fresh fund has been disbursed to Ghana by World Bank to assist the West African country for its $7.7 billion Sankofa oil and gas project.

It was gathered that the institution gave Ghana $517 million in debt and guarantees for the project after it had initially released $700 million for the same purpose.

This brings the total amount provided by the World Bank for the project to $1.217 billion.

The $7.7 billion Sankofa oil and gas project is being handled by Italian Firm ENI SpA and upstream trader Vitol Ghana.

The International Finance Corporation (IFC), a commercial lending arm of the World Bank, has projected that the Sankofa field is expected to generate about $2.3 billion in revenues for Ghana’s government per year.

It is also expected that the firm will provide a stable and long-term source of domestic gas that will solve country’s chronic gas supply constraints.

According to reports, the IFC has committed a loan of $235 million to Vitol Ghana, and is arranging another $65 million in debt.

Guarantees by the Multilateral Investment Guarantee Agency, another bank institution, will support Vitol Ghana’s commercial borrowing needs for the project and will be issued for up to 15 years.

The new pledges bring the World Bank Group’s financing share of the Sankofa project to about 16 percent.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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