Ghana has entered    into 20-year contract to provide political risk insurance for the Floating, Production, Storage and Offloading (FPSO) with MIGA on vessel that would produce and process oil and gas from the Jubilee offshore oil field in Ghana

The 20-year contract with MIGA, is a member of World Bank Group on June 30, is estimated at USD225million..
MIGA is said to provide a 75-million-dollar guarantee for an equity investment in the West African Gas Pipeline Company to cover a portion of Ghana’s contractual obligations for the project.

International Finance Corporation (IFC), also a member of the World Bank undertook due diligence to explore the possibility of financing the FPSO and IFC’s direct and mobilised financing for private sector projects in Ghana’s oil and gas sector were commercially-based and did not rely on government guarantees or below-market rate instruments from other parts of the World Bank Group.

On other World Bank Group assistance to Ghana, the statement said in response to a request from the Government, a capacity-building project with confessional IDA funding of about 30 million dollars was being prepared.

IBRD, another World Bank Group is in preliminary discussions to provide a loan on commercial terms to Ghana to enable Ghana National Petroleum Corporation (GNPC) acquire an equity stake in a joint-venture for the development of the associated gas from the Jubilee Field.

The statement said development of Ghana’s Jubilee oilfield had the potential to bring substantial benefits, including reliable and affordable power generation, government revenues estimated at more than one billion dollars during peak production, foreign exchange income, jobs, and stimulated demand for local goods and services to Ghana.

It said the engagement of World Bank Groups in the Jubilee oilfield supported the Government’s priority to develop its natural resources in the long-term interests of the country.

“The World Bank Group is committed to following the highest standards of governance, environmental and social practice to help maximise the development impact in all projects supported,” it added.

The statement said the World Bank was making available to Ghana its global knowledge and expertise in the oil and gas sector to help the government manage the new resources.

“IFC brings long-term capital along with private sector industry know-how and a commitment to best global best practices in private sector finance”.

“MIGA offers a range of benefits to investors seeking protection and continuity for their projects by providing political risk guarantees and dispute resolution services for guaranteed investments, the statement added”.