$700m windfall for Guinea infrastructure
19 October 2011
The government of Guinea will use part of a $700 million (£442 million) windfall payment to rebuild the nation's broken infrastructure, reports Reuters.
Around 35 per cent of the funds will be used for projects in the mineral-rich West African nation after a deal was struck with Anglo-American miner Rio Tinto, resolving a dispute over its stake in the Simandou iron-ore project.
The money, which is almost three-quarters of the nation's entire 2008 budget, will be spent on improving roads, electricity, health, the justice system and education in 2011.
Amadou Camara, a member of the council that is acting as Guinea's transition parliament, said about $112 million would be used in the power sector, "including the launch of the 240 megawatt capacity Kaleta Dam" and the purchase of another power centre.
Recently, the African Infrastructure Investment Fund 2 announced its closing value, with $500 million secured from investors. The money will be spent on improving infrastructure in sub-Saharan Africa.