Lesico says preconditions met for £75.5m Ghana project

Lesico reports all preconditions for the execution of the construction and upgrade of a £75.5 million water supply facility in Ghana have been met, with the Israeli company receiving a down payment of around £11.5 million.

The work includes the construction and renovation of a water pump facility in the Volta river, as well as the construction and renovation of water treatment facilities with a capacity of approximately 40,000 cubic metres per day, and the laying of approximately 60kms of water transmission and distribution lines.

The contract will also cover the construction and renovation of water towers, booster stations, and ground reservoirs.

In a statement, Lesico states that the project will be executed by a subsidiary that is 100 percent formed in Italy.

"We are proud to be partners of this strategic agreement with Ghana government and we consider this a major milestone for Lesico, as a leading player in the water and environment design build domain. In this project – with the help of BlueBird, the project finance company that specialises in funding of international projects – we have built the funding and insurance package for Ghana,” said Eyal Leshamn, Lesico CEO. 

The statement adds that the project funding will be provided by Deutche Bank and will be insured by the Italian Export Credit Agency (SACE) along with a sub insurance of the Israeli insurer ASRA. The subsidiary is expected to receive ongoing payments under the terms of the agreement with the Ghana government, from the funding party, depending on the progression of the project. The funding agreement is between Ghana government and the funding party.

"This project will allow us to open a new market, in which we will be able to use all of our capabilities and proficiencies of our different lines of activity. It also merges with the Group’s vision and strategy regarding business expansion in Africa," added Leshamn.

The objective of the Keta Water Supply and Expansion Project in the Volta region is to supply potable water to more than 400,000 people living in three districts – Keta Municipality, Anloga District, and South Tongu District. Other beneficiary communities include: Agordome, Sogakope, Keta, Anloga and surrounding areas. 

Others include Kpodze, Kpotame, Vume, Tefle, Sokpoe, Dabala Junction, Tregui, Badadzi, Havedzi, Adzeto, Tegbi, Hovi-Aferdome, Kedzi and Nukpesekope.