Accra, July 27, GNA - Parliament on Wednesday approved a credit agreement between Ghana and Agence Francaise de Development of France (AFD) for an amount of 10 million Euros for the Community Based Rural Development project (CBRDP).

The loan agreement has a one percent interest rate per annum and a repayment period of 20 years with a 10-year grace period. The French agency is co-financing the CBRDP with 10 million euros. The World Bank is providing 60 million dollars while Ghana government is providing a little over 13 million dollars for the entire project, bringing the total cost of projects to be covered under the CBRDP to 86.94 million dollars.

The CBRDP consists of six components, which would cover various areas, including the transport, local government and agriculture sectors.

The Finance Committee's report on the loan stated that the facility would also cover the rehabilitation of existing and run-down school facilities and the construction of health facilities and nutrition centres.

The House also approved a Second Financial Protocol between Ghana and the Kingdom of Spain for an amount of 65 million dollars to be used to finance various project covering public safety, fisheries, transport, health, energy and other important sectors.

The repayment period for this facility is 16 years inclusive of a seven-year grace period.

The committee's report said it was observed that the loan would facilitate the implementation of various projects critical to realising the goals and targets set for the Ghana Poverty Reduction Strategy.