Posted: Sunday 20th July 2014 at 12:36 pm

Government to announce $1.5bn alternative to slashed $3bn CDB loan


Government says it will soon announce a $1.5bn lifeline for some key infrastructural projects that could suffer after the initial $3billion Chinese loan meant to execute these projects was slashed to $1.5bn.

Minister for Communications Dr. Omane Boamah revealed   last  Saturday  on Joy FM’s Newsfile, slashing the Chinese loan “creates an opportunity for government to look for another $1.5billion”.

At a mid-year budget review in Parliament last week, Finance Minister, Seth Terkper, indicated, government will request the Legislature to half the $3 billion China Development Bank (CDB).

He explained to Joy News, the terms of the loan were no longer satisfactory after the Chinese demanded more oil than government was willing to offer in exchange for the record loan facility.

This unexpected turn of events, leaves some of the projects designed with $3bn in mind underfunded.

It is unknown which specific projects will suffer.

But the $3bn was for financing projects such as the Takoradi-Kumasi Western Corridor Infrastructure project, the Sekondi Free Zone project, the ICT enhanced surveillance project for the western corridor oil and gas enclave project, among others.

According to Omane Boamah, “government did not just work on capping it but simultaneously we worked towards looking for alternatives”.

“Very very soon some of these alternatives will be put out there” he assured Ghanaians.

He explained that as good as Ghana has progressed to a lower middle income country, there were challenges tied to that development status.

Loans, grants and other financial freebies once accorded Ghana by World Bank and IMF no longer exist.

The status pushes Ghana into the capital market for commercial loans deemed expensive.

Nonetheless, government was doing everything possible to push through its agenda to make lives better for its citizens, the minister continued.

The water sector, he pointed out, has received a $750 million funding to ensure that the life-giving resource was available to Ghanaians. Story by Ghana|Myjoyonline.com|Edwin.Appiah|[email protected]

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