98714
                                           Republic of Ghana

                                           Sankofa Gas Project

                                            Chair Summary*

                                              July 30, 2015

       Executive Directors considered the President’s Memorandum and Recommendation and
approved the following for the Republic of Ghana in support of the Sankofa Gas Project (R2015-
0143[IDA/R2015-0200]) on terms and conditions set out in the President’s Memorandum: (i)
IBRD enclave guarantees in an aggregate amount of up to US$200 million; and (ii) an IDA
guarantee of up to US$500 million. Mr. McGuire wished to be recorded as abstaining.

        Directors expressed broad support for the operation, through which the World Bank Group
(WBG) has enabled the largest private investment currently being undertaken in sub-Saharan
Africa and the largest WBG guarantee operation to date through its partnerships with the public
and private sectors. They appreciated the operation’s alignment with the WBG Country
Partnership Strategy for Ghana, the government’s medium-term strategy, and the WBG’s broader
engagement and collaboration in the energy sector. Directors welcomed the innovative
combination of IBRD and IDA funding of the guarantee instruments to support the provision of
natural gas for lower cost power generation and affordable electricity, which are important for
Ghana’s growth and macroeconomic recovery. Directors appreciated the government’s
commitment to reforms, including debt management and improvements in energy sector
performance, to maximize impact of investments like the Sankofa Gas Project.

        Directors welcomed the scale and ambition of this transformational and innovative project
and its integration of lessons learned from previous operations in Africa and other regions. They
supported the use of guarantees under the project to leverage private sector participation and enable
mobilization of almost US$8 billion of foreign direct investment in Ghana.

        Directors noted the significant impact of Sankofa gas on public revenues, and noted that
the increased fiscal space should be used to improve social spending and enhance the livelihoods
of Ghanaians. Directors stressed the importance of risk monitoring and mitigation during
implementation, including environmental and social risks. They urged staff to closely monitor the
development impact of the project which they expected to contribute to Ghana’s progress on
poverty reduction and boosting shared prosperity. Directors also requested staff to pursue
opportunities to assist Ghana in diversifying its energy mix and to help the country achieve its goal
of 10% renewable energy in the total supply mix by 2020.



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*This summary is not an approved record.