The African Development Fund (ADF) and Ghana on Wednesday signed a 26.07 million dollars grant to finance the country's Health Services Rehabilitation Project.

Mr Yaw Osafo Maafo, Minister of Finance and Economic Planning and Mr. Bisi Ogunjobi, Vice-President of the African Development Bank (ADB) in-charge of operations West and Centre signed two agreements for a loan of 17.63 million Units of Account (UA)* and a UA 1 million Technical Assistance Fund (TAF) grant, totalling an amount equivalent to US 26.07 million dollars to finance the health services rehabilitation project dubbed Health III Project. 1UA =$1.41995 as at June 1st, 2003

The Project aims to improve the coverage of quality basic health in the deprived districts with a view to reducing the massive inequalities in health outcomes in Ghana.

It will involve the strengthening of district health staff and systems particularly through the relocation of Bekwai and Tarkwa district hospitals to high-density areas.

According to Mr Osafo Maafo, the project will improve the management of sexually transmitted infections, ensure safe blood transfusion through the construction and provision of equipment to a new national blood transfusion centre in Accra at the Korle Bu Teaching Hospital.

It would also establish four other regional health centres in Secondi-Takoradi, Tamale, Kumasi and Ho.

Bank sources told the Ghana News Agency in Addis Ababa that, "the ADF loan and the TAF grant will contribute to poverty reduction in Ghana through the provision of quality basic health services, especially for underprivileged people.

"It will promote national economic growth and social development through the improvement of maternal health, the reduction of maternal and child mortality as well as malaria, HIV/AIDS and STIs control, enabling thereby the population to have more time for income generating activities."

Bank Group support to Ghana, which started in 1973 currently stands at a total of 941.50 million dollars.