Notice

Category B project supported: Obetsebi flyover, Ghana

Published 5 May 2021

1. Project description

UK Export Finance has agreed to provide support to the Ministry of Finance and Economic Planning, Ghana, for the design and construction of Phase II of a road flyover at the Obsetsebi Lamptey circle, Accra, Ghana. The Ministry of Roads and Highways will be responsible for the development of the Project. QGMI Construction UK Ltd will undertake the design and construction of the Project.

The Project involves the construction of a North-South flyover at the Obetsebi Lamptey circle in Ghana. Additionally there will be some ground-level works at the traffic circle, which will contribute to the alleviation of traffic congestion at the intersection. Storm drainage will be improved at the interchange and safe crossing points and footbridges will be provided to ensure pedestrian safety.

The Project does not include any Associated Facilities^{[footnote 1]}.

2. Project sector

The Project is in the civil construction sector.

3. Project sponsors

The Project is being developed by the Ministry of Roads and Highways, Ghana. QGMI Construction UK Ltd will provide design and construction services for the Project.

4. UK exporters

QG Construction UK Ltd.

5. Export credit agent bank

HSBC

6. Amount of UK Export Finance support

The value of the loan agreement is approximately 67 million euros.

7. OECD Common Approaches and Equator Principles

UKEF categorised the Project as a Category B (having 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”).

Public disclosure of Category B projects on UKEF’s website is not required by the OECD Common Approaches. However, UKEF has pledged to disclose support for all new Category B cases for which we have provided support from 1 April 2020^{[footnote 2]}.

8. Environmental, Social and Human Rights (ESHR) 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
• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources
• PS8: Cultural Heritage

The applicable World Bank Group EHS Guidelines were:

• General EHS Guidelines (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:

• noise and vibrations
• hazardous materials management
• waste and wastewater management
• drainage management
• air emissions
• water resources
• worker welfare
• livelihood restoration
• management of third-party contractors and suppliers
• grievance mechanisms
• occupational health and safety
• emergency planning and response
• traffic management
• cultural heritage
• community engagement
• 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 Plan, 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 greenhouse gas emissions of the Project and effects of climate change factors on the Project as part of our ESHR review of this Category B Project.

The Project comprises the construction of a new flyover at an existing interchange, which is not considered to be a carbon intensive undertaking (such as fossil fuels or heavy industry) and so “high” GHG emissions in excess of relevant thresholds for quantification and reporting set by international standards were reasonably not envisaged.

The primary objective of the Project is to alleviate the existing severe traffic congestion that is currently experienced. The economic and environmental impact assessments for the Project indicated that the Project will contribute to significant improvements to ambient noise and air quality and lead to a significant reduction in annual fuel consumption with associated reductions in greenhouse gas emissions (including when future growth in traffic is taken into account).

The review revealed that the Project design has included potential physical impacts of climate change such as changes to rainfall and weather patterns.

12. Decision

Various actions have been agreed between the Project developers, operators, 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 and UKEF 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.

12.1 UK Export Finance

April 2021

1. 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. ↩

2. Parliament. House of Commons. Environmental Audit Committee (2019) UK Export Finance: Government Response to the Committee’s Nineteenth Report of Session 2017-2019 (HC (243)) p. 4 [https://publications.parliament.uk/pa/cm201919/cmselect/cmenvaud/243/243.pdf] ↩