Standard Chartered allocates €280 million for Eastern Corridor road
Standard Chartered has earmarked a €280 million loan facility to develop sections on the Eastern Corridor road.
The social loan financing signed for the Ministry of Finance (MoF) is expected to transform the country’s transport infrastructure.
When completed, the Ministry of Roads and Highways expects the upgraded tolled route to positively affect the lives of around 500,000 residents from underserved populations.
The road financing facility is backed by Euler Hermes, the German Export Credit Agency, and INZAG Germany GmbH, a client of the Bank being the chosen engineering, procurement and construction contractor.
Standard Chartered is acting as book runner, Mandated Lead Arranger, Structuring Bank, Social Loan Co-ordinator, Original Lender1 and Agent.
The loan, which is the first in Sub-Sahara Africa, was granted to the country because the project is aimed at improving the basic transport network, categorised as affordable basic infrastructure.
Aside from that, the project would contribute to meeting the United Nations (UN) Sustainable Development Goal (SGD) nine.
The SDG nine is aimed at building resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
The Director, Structured Export Finance at Standard Chartered Bank, Desislava Radeva, noted that the partnership with the Ministry of Finance would enable them to deliver a bespoke Economic Commission for Africa (ECA) – backed solution to enable the development of this critical infrastructure project.
The €280 million transaction is the sixth ECA-supported deal in Ghana arranged by Standard Chartered Bank in the past 12 months.
This brings to a total amount of financing to over €560 million, delivering a wide range of transport and healthcare infrastructure for the Government of Ghana.
Adding to this, Xorse Godzi, Head of Corporate, Commercial and Institutional Banking, Standard Chartered Bank Ghana Plc, said:
“Our involvement in the project is a prime example of Standard Chartered living up to its brand promise here for good, and supporting our communities”.
“Having operated in Ghana for over 125 years, we are able to advise and play a leading role in tapping liquidity around the world for major sustainable infrastructure projects in the country to help Ghana achieve the SDGs,” he added.
On his part, Naim Danji, Head of Export Finance, INZAG Germany GmbH, said, “INZAG is delighted to execute this project and looking forward to the successful development and construction of this flagship infrastructure for the country of Ghana.”
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The Ghana Eastern Corridor road project
The Eastern Corridor is the National Road N2 that starts at the Tema roundabout and ends in Kalungugu, the north-eastern border with Burkina Faso.
It also links the southern coastal seaports to the hinterland and landlocked neighbours in the north.
Standard Chartered’s financing would fund the ‘Lot 1’ intersection of the road, including two flyovers and interchanges, 11 pedestrian bridges and three mixed bridges in a dual carriageway.
It stretches from the Ashaiman roundabout and ends at the Akosombo Junction, a distance of 64 km.
It would drive employment opportunities and trade, providing shorter access to the port of Tema and will link regions within Ghana and to neighbouring countries.
The intersection would also improve road safety and better access to healthcare and other essential services.