A Loan Agreement was signed in Accra between the Republic of Ghana and Kuwait Fund for Arab Economic Development, whereby the Fund will provide a loan in the amount of KD 4,500,000 (Equivalent to about US$15.3 million) to assist in the financing of the Trauma and Acute Care Centre at Korle-Bu Teaching Hospital Project (Phase 1 – A) in the Republic of Ghana.

 The Loan Agreement was signed on behalf of the Republicof Ghana by Mr. Seth Terkper, The Minister of Finance and Economic Planning and was signed on behalf of the Fund by Mr. Hesham Al-Waqayan, Deputy Director-General of Kuwait Fund for Arab Economic Development.

The purpose of the project is to support the social and economic development of Ghana, by meeting the increasing demand for, and improving the quality of and access to tertiary healthcare services in the country. The Project also aims at the expansion and improvement of the standard of emergency treatment services to meet the increasing number of patients who come directly to Korle-Bu Teaching Hospital or are referred to it from other regions or from neighboring countries.

The Project represents Phase (1 – A) of a development plan for the establishment of a new Trauma and Acute Centre at the site of Korle-Bu Teaching Hospital. The Project comprises of the construction and equipping of new three story building covering about 20000 m², which will include basement, ground and first floors, and the supply of medical and auxiliary equipment and furniture, institutional support for the project implementation unit, auditing services, and the consulting services for detailed design, tender documents and supervision of construction and procurement.

The total cost of the project including taxes, fees and interest during construction is estimated at about Ghanaian Cedi 73 million (equivalent to about KD 15.03 million Kuwaiti Dinars), about KD 12,39 million of which are in foreign currencies representing about 82% of the total cost of the Project.  The loan provided by the Fund in the amount of KD 4.5 million would cover 30% of the total cost of the Project. The Project will be co-financed with Arab Bank for Economic Development in Africa, which will contribute with about KD 2.35 million or 16% of the cost, Saudi Fund for Development, which will contribute with about KD 3.53 million or 23% of the cost and OPEC Fund for International Development with a contribution amounting to about KD 2.94 million or about 20% of the total cost of the Project.

The loan is provided with a maturity period of 24 years including a grace period of 4 years and would be paid in 40 semi-annual installments with interest at the annual rate of 1.5% in addition to a loan administrative charge at the annual rate of 0.5%.

By signing this Loan Agreement, the Fund would have provided     9 loans to the Republic of Ghana as the Fund has previously provided 8 loans totaling about KD 35 million to assist in financing projects in various sectors, The Fund has also provided Ghana with 3 technical assistances totaling to about   KD 682,000 to finance studies in various sectors.