…For Social Intervention Projects Implementation
The International Development Association (IDA) of the World Bank has committed $1.2 billion to support Ghana implement special social intervention projects covering July 2017 to June 2020.
An amount of $75 billion has been pledged to the World Bank to support poor countries.
World Bank Country Director for Ghana Henry Kerali said a significant proportion of 20 to 30 per cent of the facility would be provided through budget support every year, while the rest would go into specific projects like water, transport, education and health.
“The performance of those projects will dictate how fast the funds will be disbursed. For projects that perform well, the disbursement will be fast and for projects that perform slowly, the disbursement will be slow,” he said.
“We hope that overall, the total amount will be disbursed between the period of five to seven years because our projects are usually of that duration.”
He told journalists at the just-ended World Bank Group/International Monetary Fund (IMF) spring meetings in Washington that the allocation formed part of discussions started with the new administration.
“We also discussed the forthcoming allocation to Ghana from the IDA part of the World Bank. A total of about US$1.2 billion over the three-year period from July 2017 up to June 2020 will be made available to the country through the World Bank,” he said.
“The amount will, of course, increase because in addition to that amount by IDA, there is also the IFC which provides support to the private sector.”
“IFC will provide additional funds on top of the US$1.2 billion. I am not mentioning the IFC amount because I believe that should come from IFC.”
Kerali said the World Bank was projects 6 to 7 per cent growth rate for the Ghanaian economy in 2017 – and potentially higher in 2018 – largely on the back of improved commodity prices and macro-economic performance.
“The main drivers of growth are the expected better performance of commodity prices. Our forecast of commodity prices are a gradual increase in the medium term, so despite the drop in the last couple of days, we forecast in a medium term a gradual increase.”
Ghana holds significant revenue potential from oil, gas and gold, which are expected to increase.