ABN - The International Finance Corporation (IFC) and the Multinational Investment Guarantee Agency (MIGA) have announced a joint commitment of US$517 million towards the progression of the Ghanaian Sankofa gas project.
The large-scale $7.7 billion project aims to uncover and develop natural gas found in deep water 60km offshore from western Ghana.
The project will provide up to 1,000MW of power into Ghana’s domestic grid, which currently accounts for around 40% of the nation’s installed generation capacity.
This will reduce the East African nation’s reliance on imported fossil fuels, paving the way for the use of cleaner and more affordable energy sources.
The IFC has offered a $235 million loan to the project, while the MIGA has committed $217 million in political risk guarantees.
Phlippe Le Houérou, IFC executive vice president and CEO, said: “Developing Ghana’s domestic natural gas resources will help the country reduce carbon emissions and provide a clean source of power for generations.”
The project will reduce emissions in Ghana by an estimated 1.6 million metric tonnes annually – equivalent to taking 1.2 million cars off the road.