OPIC Board Approves $150 Million in Insurance to Rehabilitate Ghanaian Water System
March 29, 2012
(OPIC)
Will Help Increase Access to Clean Water from 61 Percent to 85 Percent of
Population by 2015
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s development finance institution, today
approved $150 million in political risk insurance to support the rehabilitation
of nearly half the municipal water purification systems in Ghana. According to
the World Health Organization and UNICEF only an estimated 37 percent of Ghana’s
urban homes and less than four percent of rural ones have piped water
connections.
This investment is central to Ghana’s National Water Policy, which aims to
increase the availability of clean water from 61 percent to 85 percent of the
population by 2015. It will also help reduce waste by increasing the efficiency
of the country’s water treatment plants from 77 percent utilization to 100
percent.
The OPIC insurance will cover the Ghana National Water Infrastructure
Modernization Project investment. Belstar Capital Ltd, a U.S. company, and
Deutsche Bank arranged the $150 million in debt financing. International
Business and Trade LLC, a Florida company, will supply and install the equipment
used to rehabilitate 38 of 82 existing municipal water purification systems,
impacting all ten of Ghana’s administrative regions.
Lack of clean drinking water and sanitation systems in Ghana cause more than
20,000 deaths annually through dysentery and other waterborne diseases. A World
Bank analysis reports that health costs from poor water and sanitation hygiene
cost Ghana the equivalent of 2.1 percent of annual GDP.
“Clean drinking water is vital not only to the health of Ghana’s population, but
to its overall economic development. By upgrading municipal water systems across
the entire country, this project will have an enormous positive impact
throughout Ghana,” said OPIC President and CEO Elizabeth Littlefield. “We are
extremely pleased to be able to support our clients and Ghana achieve this
crucial developmental goal.”
“Belstar Capital Ltd. and its project implementation partner, International
Business and Trade LLC, congratulate the Government of Ghana on this investment
in not only the physical infrastructure of the country, but also the investment
in human capital through the rehabilitation and modernization of the water
system. We are grateful that the Government of Ghana is allowing our
participation in this worthwhile endeavor”, stated Arthur Polk, Belstar Capital
President and CEO.
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