Parliament on Tuesday approved a Credit Agreement of 8,870,000 Euros between the Government and Raiffeisen Bank International AG of Austria for the improvement of water supply to two districts and a municipality in the Volta Region.

The facility would fund the first phase of a Water Supply Scheme for the Adaklu Anyigbe and North Tongu Districts and the Ho Municipality, expected to serve about 143,877 people in about 27 communities by 2022.

The project, is a proposal presented by Messrs STRABAG AG of Vienna, Austria to the Community Water and Sanitation Agency (CWSA) to construct a water treatment plant at Mafi Adidome to supply water to serve communities in the districts and municipality.

It is expected to be completed within 18 months after commencement to improve and increase access to potable water in the project area.

The loan, which has a grace period of six years, a repayment period of 12.5 years and a maturity period of 18.5 years, attracts an interest of 0.4 per cent per annum, a commitment fee of 0.375 per cent per annum, a flat management fee of 0.50 per cent, an insurance margin of 1.074 per cent per annum and a grant element of 35.58 per cent.

Mr James Klutse Avedzi, Chairman of Finance Committee, told the House that the committee had critically examined the facility and its terms satisfied Ghana’s requirement for concessionary borrowing.

He explained that the project would lead to improved access to potable water in the beneficiary communities and contribute to the achievement of the Millennium Development Goal of at least 76 per cent potable water coverage by 2015.**