By Francis Kokutse

Accra, Jan 20 (IANS) India will assist Ghana in a joint venture to set up a$1.1 billion fertiliser plant in the Shama Industrial Area of the west African nation.

Ghana's Minister of Food and Agriculture Kwesi Ahwoi said finance for the project will be sourced from banks and financial institutions in both the countries.

Under a memorandum of understanding, Ghana will sell gas generated from the Ghana National Petroleum Corporation's (GNPC) Jubilee oil fields for use in the production of fertiliser.

A five-member delegation from India, led by Sutanu Behuria, secretary in the department of fertiliser under the ministry of chemicals and fertiliser, held discussions with the Ghanaian government in the capital. The visit was to finalise arrangements on the management and shareholding structure of the company.

During a courtesy call by the team, Vice President John Dramani Mahama said as population increased, there was need to step up production to meet the growing demand for food and the use of fertiliser was one way of achieving increased output.

"Fertiliser production is a strategic way of improving our capacity to make it affordable to our farmers to achieve food security," Mahama added.

He said the government's intention was to use the gas generated from the oil field to support power generation. However, because of the importance it placed on the fertiliser plant, provision would be made to sell some gas to the plant as well.

The ministry of agriculture has started discussions on the sale of gas as well as finding out ways to make those people shareholders whose land will be used for the project.

Behuria said food production in developing countries has been greatly affected in a negative way because of the overdependence on developed countries. He suggested that developing countries should step up fertiliser production to meet their demands.