Ghana and EU sign addendum

Ghana and the European Union have signed two financing agreements on natural resource and environmental governance (NREG) and general budget support, as well as an amendment to the country strategy paper spanning the period 2008-2013.

The deal was signed by Minister of Finance and Economic Planning, Dr. Kwabena Duffuor and Mr. Claude Maerten, Ambassador and Head of the European Union Delegation in Ghana.

The NREG programme, which is jointly financed by the EU, World Bank, the United Kingdom, France and the Netherlands, aims at addressing the challenges in the forestry, mining and the environment sub-sectors in an integrated manner.

The total donor support is about 90 million Euros with the EU contributing eight million Euros.

Mr. Maerten said an initial disbursement of EUR 4 million would be made in 2011, depending on the achievement of mutually agreed targets.

He said the signing of the two documents relates to the additional support that the EU has decided to provide to Ghana in response to the world food crisis that has affected the world economy in the last couple of years, noting that diagnostics has shown that Ghana’s economy has been particularly vulnerable to these external shocks.

He said an additional support was under discussion, adding that the outcome would depend on the progress made in the coming period. A thorough review of the NREG arrangement will take place in July this year.

The food facility seeks to assist government to implement its policy objectives and programmes, especially in the agricultural sector. It will also help government to address fiscal challenges as a result of soaring international food prices.

The facility is a special fund, established by the EU to mitigate the social and economic impact of the potential second round of the global financial meltdown. The EU is supporting the food programmes with 15 million Euros.

An amendment agreement to the 10th EDF seeks to incorporate a general budget support (Vulnerability (V)-FLEX) facility of 35 million Euros which was extended to Ghana by the European Union in December 2009.

Finance Minister Dr. Duffuor expressed government's gratitude for the EU's continued support for Ghana's development agenda and towards the creation of wealth and reduction of poverty.