Etihad Credit Insurance (ECI), the UAE Federal export credit company, has entered into a collaboration with Israel Export Insurance Corp. Ltd. (ASHRA) to fund Ghana’s AED540 million (EUR140 million) healthcare project.
ECI will provide buyer’s credit guarantees to the funding bank which will see the construction of four hospitals and the first main central medical storage facility in Ghana.
The agreement, signed by Massimo Falcioni, CEO of ECI, and Nissim Ben Eli, CEO of ASHRA, is the first public-private partnership (PPP) project between the UAE and Israel, after the signing of the Abraham Accords in September 2020.
The collaboration pact will bring together both countries’ export credit agencies, Ghana’s ministry of finance, a healthcare construction company and a commercial bank.
The ministry of health of Ghana awarded the contract for healthcare projects to EDC International, a leading Israel engineering and construction company with a presence in the UAE.
EDC International will execute the project’s second phase with a total value of AED406 million (EUR105 million).
The projects are expected to provide ease of access to advanced medical facilities for several thousands of Ghanaian citizens.
Under the agreement, ECI will co-guarantee with ASHRA the financing facility offered by Israel Discount Bank (IDB) to Ghana’s finance ministry.
The ministry of finance of Ghana, in turn, will pay EDC International to construct the hospitals.
The ECI will provide AED185 million in reinsurance coverage, accounting for 49 percent of the total coverage offered for the second phase of the project.
By partnering with ASHRA on this project, Etihad Credit Insurance has also generated AED185 million (EUR48 million) worth of economic activity through exports and re-exports of products and services from the UAE.
The agreement also sets the stage for broader economic and trade partnerships following another historic milestone – the signing of the UAE-Israel Comprehensive Economic Partnership Agreement (CEPA).
On the sidelines of the agreement signing ceremony, both export credit agencies discussed with IDB on further future collaboration in order to help the UAE and Israeli companies win more joint international projects.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Deputy Chairman of the ECI’s Board of Directors, said, “The ECI’s efforts will help to boost momentum from our recently signed trade deal with Israel and unlock new trade and investment opportunities across the Middle East, Africa and beyond.”
“In the first quarter of 2022 itself, the total value of non-oil trade between the UAE and Israel exceeded the $1 billion mark, and there’s much more room to grow,” he added.
Follow us on
