Government readies for first tranche of Sinohydro deal

Business News of Thursday, 22 November 2018

Source: citinewsroom.com

2018-11-22

Minister for Roads and Transport Kwasi Amoako Atta signing the 2bn Sino Hydro deal on behalf of govt

The Minister of Information, Kojo Oppong Nkrumah, has indicated that Ghana is ready to access the first tranche of the Sinohydro facility meant to expand infrastructure.

The project, which is worth $2 billion, was signed in 2017 between the government of Ghana and Sinohydro, a Chinese company for the construction of priority infrastructure projects across Ghana including new interchanges in Tamale in the Northern Region, and Takoradi in the Western Region.

Critics have also said the agreement must be reviewed because it is not in the interest of Ghana and would add up to Ghana’s debt stock, a claim government had rejected.

Briefing journalists in Accra, Kojo Oppong Nkrumah said Ghana is ready to access the first tranche of the deal despite the stiff opposition.

The government signed the master project support agreement with Sinohydro of China last year and was subsequently approved by Parliament.

Ghana is now ready to secure the first tranche of the agreement which is worth $649 million. Two sets of contracts to this effect have been laid before Parliament.

Roads to benefit from the project

The minister listed a number of communities across the country which are to benefit, including about 84 kilometers of Accra inner city road as follows:

Ga North Trobo road

Anyaa-Sowutuom road

Dome-Kwabenya road

Lezdekoku-Teshie road

Nanakro Santuo road

Kumasi Inner city road (100 KM)

Manhyia sub-metro road

Suame sub-metro road

Tafo Pankrono sub-metro road

Asokwa sub-metro road

Kwadaso sub-metro road

Oforikrom sub-metro road

Subin sub-metro road

Nyhiraeso sub-metro road

Bantama sub-metro

Tamale interchange project

PTC roundabout project, Takoradi

Adentan- Dodowa dual carriageway

The Sunyani inner cities roads

Upgrade of selected feeder roads in Ashanti & Western Regions

Rehabilitation of Oda-Ofoase-Abirem road

Construction of Hohoe – Jasikan- Dodepepeso road (66 KM)

Sinohydro deal

The government sealed an agreement with the Chinese government to sell refined bauxite to China’s Sinohydro Group Limited and in return receive $2 billion to undertake infrastructure projects in the country.

The agreement among others will fund the infrastructure projects in Ghana, including roads, bridges, interchanges, hospitals, housing, railway development as well as rural electrification.

The Minority in Parliament had written to the International Monetary Fund over the issue.

According to the Minority, the $2 billion bauxite deal is a loan despite attempts by the government to make Ghanaians believe it is a barter arrangement that would not bloat the country’s debt stock.

According to the Minority, the agreement is similar to the $3 billion petroleum-based China Development Bank (CDB) loan agreement the country went for when it wanted to build its gas infrastructure.

However, the World Bank in a response clarified that the facility was not a loan.

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