Sankofa Gas to receive 517 million dollar support from World Bank 

Sankofa is expected to generate 2.3 billion dollars in revenue for government per year and provide a stable, long-term source of domestic gas that will solve the country's chronic gas supply constraints. 

IFC has committed a loan of $235 million to Vitol Ghana and arranging another $65 million in debt from the Managed Co-Lending Portfolio Program, a loan-syndication initiative that enables third-party investors to participate passively in IFCs senior loan portfolio. 

The IFC financing is part of $1.35 billion loan facility provided by commercial banks. Multilateral Investment Guarantee Agency, MIGA, has committed these commercial lenders with up to 217 million dollars in political risk guarantees.

The government has identified the Sankofa project as one of two transformational projects that will help the country achieve its COP21 commitments for climate mitigation. 

Once it starts to produce gas in early 2018, the project is expected to reduce carbon emissions in Ghana by an estimated 1.6 million metric tons annually as gas displaces heavy fuel oil equivalent by providing fuel to 1.2 million cars each year or planting 152 million trees. 

According to the International Finance Corporation, IFC, Executive Vice President and CEO, Phlippe Le Houérou, Ghana will require significant power generation and infrastructure to meet the growing needs of its young and expanding population. 

The project demonstrates that private capital can be mobilized on a large scale to contribute to the country's energy security. 

Developing the domestic natural gas resources will help the country reduce carbon emissions and provide a clean source of power for generations. 

With  the  announcement,  IFC and MIGA support brings World Bank Group financing for the Sankofa Gas Project to approximately 1.217 billion dollars, building on a 700 million dollar guarantee package from the World Bank announced last year that will help Ghana National Petroleum Corporation ensure timely payments for gas purchases.

It has enabled the project to secure financing from its private sponsors.  This is a transformational project for Ghana at an important time. 

The World Bank Group's involvement, including financing from IFC and MIGA, is enabling gas to be used for the benefit of the country's economic development. 

MIGA's guarantees will support Vitol Ghana's commercial borrowing needs for the project and will be issued for up to 15 years, against the risks of Transfer Restriction including Inconvertibility, Breach of Contract, Expropriation, and War and Civil Disturbance.

GBC