Washington, July 30, 2015 – The World Bank has approved a record investment of $700 million in guarantees for Ghana’s Sankofa Gas Project – a transformational project that will help address the country’s serious energy shortages by developing new sources of clean and affordable natural gas for domestic power generation.
In a press release issued by the World Bank, the Bank’s Board of Directors approved a unique combination of two guarantees for the Project. The first is an International Development Association Payment guarantee of $500 million that supports timely payments for gas purchases by the Ghana National Petroleum Corporation. The second guarantee is an International Bank for Reconstruction and development Enclave Loan guarantee of $200 million that enables the project to secure financing from its private sponsors. Together, the guarantees are expected to mobilize $7.9 billion in new private investment for offshore natural gas, representing the biggest foreign direct investment in Ghana’s history.
According to the World Bank, developing the Sankofa Gas Project – located 60 km offshore – is expected to bring significant benefits for Ghana by fueling up to 1,000 megawatts of clean power generation, replacing polluting and expensive oil-burning electricity. Once the Sankofa field starts to produce gas in early 2018, Ghana will be able to reduce its oil imports by up to 12 million barrels a year and cut carbon emissions by 1.6 million metric tons of CO2 annually.