Notice

Category B project supported: Kumasi Central Market, Ghana

Published 30 November 2021

© Crown copyright 2021

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/category-b-project-supported-kumasi-central-market-ghana/category-b-project-supported-kumasi-central-market-ghana

1. Project description

UK Export Finance (UKEF) has agreed to provide support to the Ministry of Finance, Ghana, for Phase 2b of the redevelopment and modernisation of Kumasi Central Market (KCM, or ‘the Project’)[footnote 1]. The Ministry of Local Government and Rural Development (the Buyer) will purchase services related to the design, construction and operation of the Project on behalf of the Kumasi Metropolitan Assembly (KMA) and the Ministry of Finance. Contracta Construction UK Limited (Contracta) will undertake the design and construction of the Project. An operator for the market will be appointed by KMA.

A key aim of the Project is to improve environmental and health and safety issues, as well as congestion, in and around the KCM. The redeveloped KCM will be fitted with a fire detection system and have a fire station. A dedicated electrical substation will be installed and there will be backup generators on site. To reduce congestion, traders will be allocated defined market stalls, width of pavements along the roads will be increased and pedestrian barriers will be established to prevent trading on the roads. The redeveloped KCM will also have a car park, sufficient sanitary facilities, adequate drainage, defined waste storage areas, a waste treatment plant and modern refrigeration systems.

Phases 1 and 3 of the KCM development are considered Associated Facilities[footnote 2].

2. Project sector

The Project is in the civil construction sector.

3. Project sponsors

The Project is being developed by the Kumasi Market Authority. Contracta will provide construction services for the Project.

4. UK exporters

Contracta Construction UK Limited

5. Export credit agent bank

Deutsche Bank

6. Amount of UK Export Finance support

The principal value of the UKEF support is approximately EUR 145 million.

7. OECD Common Approaches and Equator Principles

UKEF categorised the Project as a Category B i.e. having environmental, social and human rights (ESHR) impacts that are few in number, site-specific, few (if any) of which are irreversible, and for which mitigation measures are more readily available) in accordance with the definition in the 2012 (Revised 2016) OECD Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “OECD Common Approaches”) and the Equator Principles (2020).

8. Environmental, Social and Human Rights standards

Project related ESHR documentation was reviewed for alignment against the 2012 International Finance Corporation (IFC) Performance Standards (PS) on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety (EHS) Guidelines.

The applicable IFC PS were:

  • PS1: Assessment and Management of Environmental and Social Risks and Impacts
  • PS2: Labour and Working Conditions
  • PS3: Resource Efficiency and Pollution Prevention
  • PS4: Community Health, Safety and Security
  • PS5: Land Acquisition and Involuntary Resettlement

The applicable World Bank Group EHS Guidelines were:

  • General EHS Guidelines (2007)
  • EHS Guidelines for Water and Sanitation (2007)

9. Nature of ESHR impacts

The review of potential ESHR risks and impacts took into account the following impacts, receptors and issues during the construction and operational phases of the Project:

  • climate change
  • noise and vibration
  • hazardous materials management
  • waste and wastewater management
  • drainage management
  • air emissions
  • worker welfare
  • management of third-party contractors and suppliers
  • grievance mechanisms
  • occupational health and safety
  • emergency planning and response
  • traffic management
  • community engagement
  • economic displacement
  • community health, safety and security

10. Assessment of ESHR impacts

A review was undertaken in line with the requirements of the OECD Common Approaches to identify potential ESHR risks and impacts of the Project and how these would be effectively managed.

The review included:

  • Desk-based review of project-related documentation: Environmental and Social Impact Assessment, Environmental and Social Management Plans, and Stakeholder Engagement Plan
  • Follow-up meetings and interviews with relevant Project representatives

The results of this review formed the basis for the evaluation of the Project’s alignment with relevant international standards, and recommendations for future compliance and monitoring.

11. Climate change considerations

UKEF considered the potential direct and indirect green house gas (GHG) emissions of the Project and effects of climate change factors on the Project as part of its ESHR review. The Project is not considered to be a carbon intensive undertaking (such as fossil fuels or petrochemical) and so “high” GHG emissions in excess of relevant thresholds for quantification and reporting set by international standards were reasonably not envisaged. Furthermore, a material increase in road traffic with associated GHG emissions is not anticipated. Whilst the market may attract more visitors, their journeys are most likley to be made on foot. The review revealed that the Project design has considered potential physical impacts of climate change such as changes to rainfall and weather patterns.

12. Decision

Various actions have been agreed between the Project developer, operator, and parties involved in the financing, which are necessary to ensure the Project’s on-going alignment with international standards. Following agreement of these commitments, it was concluded that the Project should meet the relevant international standards over the Project cycle. UKEF has therefore decided to provide its support in respect of the supply of capital goods and services by UK exporters to the Project.

A condition of support is that the Project will be subject to environmental and social monitoring in order to provide satisfaction that the Project is aligned with the relevant international standards throughout the duration of support.

UK Export Finance

November 2021

  1. This notice of support is for the second tranche of financing for Kumasi Market Phase 2b. UKEF provided a first tranche of financing for the market in 2018/2019. ↩

  2. OECD Common Approaches defines “Associated Facilities” as: those facilities that are not a component of the project, but that would not be constructed or expanded if the project did not exist and on whose existence the viability of the project depends; such facilities may be funded, owned, managed, constructed and operated by the buyer and/or project sponsor or separately from the project. ↩

Back to top