Accra, Ghana (PANA) - Ghana and Germany Friday signed an agreement for a loan totalling of 40 million deutsche mark for the rehabilitation of Tema-Sogakope- Aflao road, west of Accra, and the improvement of district capitals.

Together with earlier commitments, Germany is now contributing 76 million deutsche mark for the rehabilitation of the Tema-Sogakope-Aflao road while 11 million goes into the promotion of district capitals.

The loan covers the first phase, which is the Tema-Sogakope road, and has a repayment period of 40 years at an interest rate of 0.75 percent per annum.

The accord was signed by the finance minister, Richard Kwame Peprah, and Christian Nakonz, the German ambassador to Accra.

The agreement includes a non-repayable grant of 15 million deutsche mark to finance rural water supply and the rehabilitation of water supply systems in the Eastern and Volta regions.

Peprah said the 166-km Tema-Sogakope-Aflao road forms an integral part of the ECOWAS Trans-West African Highway network and its rehabilitation would enhance the economic integration of Ghana with its neighbours.