Parliament has approved a total of €101.76 million loan agreement to finance the design and construction of drainage and ancillary sewage system, that will cover the Nima drain from Kaokudi to the Odaw River Basin.
The agreement is between the government and Standard Chartered Bank, London.
The facility comprises of the Term Loan Facility of €91.4 million as well as the Commercial Facility of €10.38 million between the Government of Ghana and Standard Chartered Bank, London.
The terms and conditions of the Loan facility include; the facility amount of €91.4 million, repayment amount in 10 years, grace period of three years, tenor 13 years, an interest rate of EURIBOR + 0.95 per cent per annum, a commercial fee of 0.30 per cent per annum, upfront fee of 1.25 per cent flat and All-in-cost of 3.09 per cent per annum.
Also, the terms and conditions of the Commercial facility include; facility amount of €10.38 million, repayment amount in 4years, grace period of one year, tenor of 5years, interest rate of EURIBOR plus 4.50 percent per annum, commercial fee of 0.50 percent, upfront fee of 1.25 percent per annum and All-in-cost of 5.14 percent per annum.
Dr Mark Assibey-Yeboah, Chairman of the Finance Committee in presenting the Committee’s report to the plenary observed that the object of the project is to mitigate the perennial flooding and improve the environmental and sanitary conditions.
This, he said, would alleviate the serious damage to property and health risk in the Nima community with a subterranean drainage system rather than the self-defeating open drains.Besides, the project seeks to enhance access throughout the Nima-Mamobi area for pedestrians as well as help the community to create public spaces that would serve the diverse needs of all residents.
Dr Assibey-Yeboah also indicated that the scope of the project covers works to be undertaken on the already existing Nima drain in the Accra Metropolitan area, which includes; the rehabilitation and enhancement of the Nima drain, that is from Nima road to Odaw River.
This is a major intervention, which would be integrated with the city of Accra through a holistic resolution of pressure and problems zones together with the generation of city space elements.
He explained there would be backfilling of the side banks on phase one which stretches between Obasanjo Highway and Mamoobi Highway and the construction of a rectangular closed section between Obasanjo Highway and Mamoobi Highway.
He said the construction of a rectangular closed section on the stretch between the Mamoobi Highway and Kojo Thompson Avenue, which comprises the necessary works for the foundation of the enhancement area over the new closed drain.
He said the modification of the existing output of the Nima drain into Odaw river would rotate it to a 45-degree angle output.
Mr Joseph Yieleh, Chireh, Member of Parliament for Wa West in his remarks said the project would save the country a lot of problems in terms of managing the sewage system in the Nima area.
He said flooding in the area had become ritualistic and that every year there were cases where water washed through and taking away properties, adding that if the contract works diligently within the 24 months indicated it would save lives and properties.
Samuel Atta Akyea, the Housing Minister said after the approval, explained that the project would not only improve sanitation in the area but also save the nation the huge cost of annually desilting the choked drains.
He said for the year 2019 alone, the amount voted desilting and drainage lining was ¢250 million, and the project would discourage people from littering the environment.
Mr Akyea said despite complaints from certain quarters that the project would raise Ghana’s debt stock, it was high time a permanent solution was found to the flooding to reduce the longterm financial implication on the nation, and reduce the associated diseases that came with open drains.
“It costs a lot, if we don’t do it,” the Minister said.He announced that the people in the catchment area would also enjoy green area, bike and walkways, upgraded football pitch, shade areas and playgrounds.
The Minister said the President, Nana Addo Dankwa Akufo-Addo was interested in the project; and expressed the hope that it would be replicated in other parts of the country.