Parliament approves €47 million facility loan for the Legon hospital expansion


Parliament has approved a €40,643,000 Ashra Export credit facility and €6,520,000 tied commercial facility to finance the expansion works at the University of Ghana Medical Centre (UGMC).


Presenting the committee’s report on  the floor of parliament, Chairman of the Finance Committee and Member of Parliament for New Juaben South, Mark Assibey-Yeboah indicated that the phase two of the project, funded under the agreements is focused on the provision of strategic income generating services for short, medium and long-term sustainability of the hospital.

Mr Assibey-Yeboah again stated that the credit facilities for the phase two project are both critical and complementary in mobilising additional resources to address the critical gaps in the operations and sustainability of the UGMC.

The Finance Committee’s report on the credit facilities agreement

The object of the project is to establish a state-of-art training for medical education that will facilitate the relocation and accommodation of all institutions of the College of Health Sciences at the University of Ghana, Legon campus to serve as a nerve of proposed Medical Village.

The centre is to function locally as a referral hospital and operate at a specialised level to attract clientele beyond the borders of Ghana to take advantage of the specialties offered in the country which is expected to be first class in the sub-region.

Under the terms and conditions of the loan, the Ashra Export Credit Facility amounts to €40,643,000.

Interest Rate on the loan is 1.45 percent per annum, Commitment Fee adds up to 0.60 percent and Agreement Fee is 0.80 percent flat of facility amount.

The Grace Period of the loan facility is 2 years, Repayment Period is 10 years and the tenor is 12 years.

The tied commercial facility also amounts to €6,520,000 under the terms and conditions.

The interest Rate is 1.75 per annum and Commitment Fee is 0.60 percent per annum. Agreement Fee is 0.80 percent flat of the facility amount.

This agreement has a Grace Period of 1 year, Repayment Period of 4 years and a tenor of 5 yesrs.

Legal Fees for both credit facility agreements is €15,000.

Source: GhanaJustice/S.Ayisi


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