Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Seawater Desalination Project in Ghana
- Project ID
- Fiscal year
- Guarantee holder
Standard Bank of South Africa Ltd.
Daye Water Investment (Ghana), BV
Abengoa Water Investments Ghana, BV
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- June 17, 2011
- Project Board date
- September 06, 2012
- Gross exposure
- $178.1 million
- Project type
- Strategic priority area
This summary covers an equity investment and a shareholder loan by Abengoa Water Investments Ghana, BV of the Netherlands, an equity investment and a shareholder loan by Daye Water Investment (Ghana), BV of the Netherlands, and a non-shareholder loan by Standard Bank of South Africa in the Seawater Desalination Project in Ghana. This summary was originally posted on June 17, 2011 and was updated on August 6, 2012.
The investors have applied for MIGA guarantees totaling $178.1 million for a period of up to 20 years for the equity investments, 14 years for the shareholder loans, and 12 years for the non-shareholder loans (including interest and swap). The coverage is against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance.
The project involves the construction and operation of a seawater desalination plant in Accra by Befesa Desalination Developments Ghana Ltd, a joint venture company of Abengoa Water Investments Ghana, BV, Daye Water Investment (Ghana), BV, and their local partner Hydrocol Ltd. The plant will be built on a 25-year build-operate-transfer (BOT) basis and is expected to supply 60,000 cubic meters of potable water per day to the residents and businesses in the project area.
Accra is one of the major cities in Ghana that is experiencing rapid urbanization and population growth. Many residents in the city do not have access to piped or safe water, and many old settlement areas and urban suburbs are facing water shortages. The project will provide potable water to the residents and businesses located in the Teshie-Nungua catchment of Accra and help meet some of the immense need resulting from rapid urbanization. It will also improve security and quality of the water supply. The project will also generate other development impacts such as introduction of seawater treatment technology and increased employment and government revenues.
The proposed project also supports MIGA’s strategy of promoting investment in complex infrastructure projects and in countries eligible for assistance from the International Development Association.