THE MINING SECTOR SUPPORT PROGRAMME

The Financing Agreement for the Mining Sector Support Programme between the Republic of Ghana and the European Commission was signed in December 2002, within the framework of the Lomé IV Convention and the 8th European Development Fund.

Under the Agreement, the European Commission has granted to the Republic of Ghana the amount of EUR 40 million to support various projects in the Mining Sector, aiming at improving its performance.

The main areas of focus are:

i. institutional strengthening to fulfil the facilitating and regulatory roles of mining sector support institutions,

ii. the construction of a modern geological infrastructure (maps, databases), including the geological mapping of virgin areas and airborne geophysics over the Volta and Keta Basins,

iii. mitigation of the negative impact of mining activities on the local communities, and

iv. feasibility studies to upgrade the western corridor mining supportive infrastructure.

COOPERATION BETWEEN THE EUROPEAN COMMISSION AND THE GOVERNMENT OF GHANA

The European Commission cooperation with the Government of Ghana for the period 2002-2007 aims at supporting the Government’s efforts in reducing poverty through equitable economic growth and accelerated poverty reduction within a sustained democracy, in line with Ghana’s Poverty Reduction strategy (GPRS).

The EC’s support to Ghana’s development and poverty reduction priorities takes into consideration:

I. the development priorities of the government as reflected in the GPRS and EU development policies and priorities;

II. the financial requirement and implementation capacities in a particular sector;

III. the existence of a sector development policy;

IV. the historic development relationship between the EC and Ghana and its strengths and weaknesses;

V. this historic development relationship between the EC and Ghana with other donors, and

VI. the comparative advantages of the EU as a donor.

Based on these criteria, rural development, road transport and macro-economic support have been identified as the three focal sectors for EC support to Ghana.

These focal sectors are complemented by other activities in the filed of health, education governance, the environment, culture, private sector development and trade.

It is in the context of this Country Strategy that the European Commission has provided €40 Million to enhance the sustainability of the mining industry under the Mining Sector Support Programme.

Signature of MSSP Financing Agreement on 2nd December 2002 By Mr. Poul Nielson, European Commissioner and the Hon. Minister of Finance Mr. Yaw Osafo-Marfo

Projects Objectives

• To sustain the country's mining sector economic performance

• To alleviate poverty by increasing employment

• To mitigate the mines' negative environmental impacts

• To increase the number of persons employed by the sector

• To increase export revenue from mining

• To promote the diversification of minerals produced

PROJECT MANAGEMENT UNIT (PMU)

A Programme Management Unit (PMU) was established to ensure the implementation and monitoring of all activities under the Mining Sector Support programme. The PMU is responsible for the daily management of the programme and the identification of suitable projects that have the potential to alleviate poverty and create wealth among rural mining communities. Some studies into such projects which have been financed by the PMU are listed under “Small Projects”.

Members of the Project Management Unit

CONTACTS:

N0.9 Cantonments Cresent

Cantonments

P. O. Box CT 381

Accra, Ghana

Tel: (+23321) 772301 / 785091

Email: michel@msspghana.com