The International Financial Corporation (IFC), a member of the World Bank Group has set up a fund facility of $75 million to support the infrastructure expansion projects of Bulk Oil Distribution Companies (BDC?s) in Ghana as part of efforts to enhance their capacity in meeting the petroleum demand of consumers.

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This facility is termed as a risk sharing fund between the IFC and the Standard Chartered Bank according to Ronke-Amoni Ogunsulire, IFC Country Manager for Ghana.

She disclosed this information in an interview at the World Bank Ghana Office in Accra on Monday after the signing of a partnership deal to disburse an amount of $16 million loan facility for the completion of a tank farm in Tema by Quantum Group.

Quantum Oil Terminal Limited is developing a 55,000 metric ton petroleum products storage facility near the port of Tema, 29 km east of Accra. The project will help address storage constraints in the petroleum products distribution value chain and reduce shortages in Ghana.

Out of this $16 million fund, the OPEC fund for International Development provided $8 million whilst the IFC also provided $8 million.

This collaboration with IFC on the Tema Tank Farm project is critical for us and for Ghana, said Emmanuel Egyei-Mensah, Quantum?s Group Executive Chairman and Chief Executive Officer.

IFC support to establish international best practices in corporate governance and environmental and social systems throughout the Quantum Group, will position us for optimum performance as Ghana liberalizes petroleum product pricing.

IFC is committed to partnering with local private sector players to build capacity and meet the growing energy needs of Ghanaians, said Ronke-Amoni Ogunsulire adding that the energy sector is a priority for IFC, and we are working on projects in every part of the value chain.

?We are pleased that, together with Quantum, we can help reduce fuel shortages in Ghana? she noted.

IFC has invested over US$2.4 billion in total in Ghana. In the past five years, investment in the energy sector amounts to US$525 million including oil and gas exploration and production, power production, and refined petroleum distribution.

She therefore congratulated Mr. Emmanuel Egyei-Mensah of the Quantum Group and his staff for spearheading this important and timely project which will increase Ghana?s storage capacity for refined petroleum products.

She maintained that the IFC recognizes the tremendous investment the Quantum Group has made ? in terms of financial resources and human resources ? to put together such a large venture.

?We are honoured to partner with the Quantum Group, not only because it is a leading player in the sector, but also because the project aligns with our priority of helping Ghana solve some of its most pressing concerns? said Ogunsulire.

In this case, helping to alleviate fuel shortages for the benefit consumers, through the provision of adequate, modern and efficient storage facilities.

The IFC also expect other positive impacts from this project including the unlocking of business opportunities in several sectors, and the creation of jobs, particularly in the oil marketing companies that sell fuel to end-users at filling stations.

?IFC is pleased to sign the loan agreement for the financing of the Tema Tank Farm Project? she concludes.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development.

Source: Ebenezer Sabutey

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