ANNOUNCEMENT 05 Aug 2020
In August, UKEF announced providing financing to support the construction of a hospital in Ghana.
NUMBER OF INTERVENTIONS
Construction Review, Africa News, “Ghana receives financial support for construction of a new Regional Hospital”. Available at: https://constructionreviewonline.com/2020/08/ghana-receives-financial-support-for-construction-of-a-new-regional-hospital/
UK Export Finance agency, Press Release, “UK government provides over £140 million of support for exports to Ghana”. Available at: https://www.gov.uk/government/news/uk-government-provides-over-140-million-of-support-for-exports-to-ghana
UKEF, Guidance, “UKEF's approach to foreign content”. Available at: https://www.gov.uk/government/publications/ukefs-approach-to-foreign-content/ukefs-approach-to-foreign-content
On 5 August 2020, the UK Export Finance Agency (UKEF) announced providing financing to support the construction of a hospital in Koforidua – Ghana. For the construction project, British Bank Standard Chartered signed a UKEF-backed financing agreement with the government of Ghana. The financing agreement has a total value of EUR 78 million (USD 92.6). The financing will be used for the construction of a 285-bed hospital that will be undertaken by engineering companies Ellipse and Tyllium. For the project, UKEF will provide EUR 60.2 (USD 71.5) million financing in the form of a direct loan and a buyer’s credit facility.
Concerning the financing from UKEF, the CEO of Tyllium Bruno Schambacher stated that: “UKEF’s support is allowing EPC companies like ours to take full advantage of the new trading opportunities created by the rise of developing economies like Ghana. Their flexible finance was at the core of our successful bid.”
On the other hand, the CEO of Ellipse Projects Oliver Picard said: “Our company operates actively in Africa and is already present in Ghana in the health sector. We are pleased that UK Export Finance is supporting us as we secure these exciting contracts. UKEF’s flexible finance demonstrates the government’s true commitment to the growth of UK exports.”
To be eligible for support from the United Kingdom Export Finance agency (UKEF), transactions must satisfy UKEF’s foreign content policy. According to the UKEF’s guidance on foreign content, the export contract value must have a minimum UK content of 20% (maximum 80% foreign content). Although 20% is the minimum level of UK content to be eligible for support, UKEF seeks a higher level of UK economic activity in transactions.