Japanese funding status for the Accra-Yamoransa road project has changed from loan to grant. Mr Motoyoshi Noro, Charge d'Affaires of the Japan Embassy in Ghana, said this in Accra on Thursday when he and Mr Hackman Owusu-Agyemang, Minister of Foreign Affairs signed and exchanged notes on an 18 billion-cedi Japanese food aid grant for the year 2001.

Mr Noro said a Japanese International Co-operation Agency team was now reviewing the content of the project. Mr Noro said Japan was willing to continue to offer support to the people of Ghana in the form of grant in aid including technical co-operation although new yen loans would not be provided as a result of Ghana's decision to apply for the Highly Indebted Poor Countries (HIPC) initiative.

Under the food aid programme, rice would be imported from Japan to Ghana. This is to meet the increasing demand for rice and complement her self help efforts to sustain food production and also contribute to improving Ghana's balance of payment situation. Mr Owusu-Agyemang, Minister for Foreign Affairs, said the shift in the status of the funds for the road meant that Japanese funding for the project was virtually free.