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Mon, Dec

“$600M FIRST TRANCHE OF SINOHYDRO CASH READY”

Business & Economy

Ghana is ready for the first tranche of the US$2 billion Sinohydro infrastructure deal between the Government of Ghana and China.

Ghana is ready for the first tranche of the US$2 billion Sinohydro infrastructure deal between the Government of Ghana and China.

 

The first tranche, which is worth $649 million, is set to be released to the government after the necessary parliamentary approval has been given for two sets of contracts to that effect.

The contracts are engineering procurement construction contracts (EPCs) and the deferred payment agreement (DPA). Parliament’s committees on finance and roads and highways met to discuss the agreement yesterday.

First phase

At a media briefing, the Minister for Information, Kojo Oppong Nkrumah, said the committees’ report would be presented to the House before the end of this month “to pave the way for construction work to begin”.

Under the first phase of the deal, ten major road projects across the regions have been considered for upgrading, rehabilitation and construction.

They include 84 kilometres of Accra inner-city roads; 100 kilometres of Kumasi inner-city roads; the Tamale interchange project; the PTC roundabout interchange project in Takoradi; the Adenta-Dodowa dual carriageway; Sunyani inner-city roads; and Western Region and Cape Coast inner-city roads.

Others are the upgrading of selected feeder roads in the Ashanti and Western Regions; rehabilitation of the Oda-Ofoase-Abirem road and construction of the Hohoe-Jasikan-Dodo Pepesu road.

Specifics

Among the roads earmarked for construction under the Accra inner-city project are the Anyaa-Sowutuom, Dome Kwabenya, Nanakro-Santeo and Teshie roads.
Areas covered under the Kumasi inner-city project are Manhyia, Suame, Tafo-Pankrono, Asokwa, Kwadaso, Oforikrom, Subin, Nhyiaeso, Bantama and Asante Mampong.
For the Western Region and Cape Coast projects, among the roads covered are Akotokyir, the Amamoma area, Abura New Community and the Polytechnic area (all in Cape Coast), Apawusika and Prestea town.

For selected feeder roads in the Ashanti and Western Regions, beneficiary town and roads will include Achiase; Wansamere-Awisasu; Mpasatia town; and Nyinahin-Adupri (feeder road). The rest are Nyinahin-Sereso; Timpon-Achiase Junction, Nyinahin town; Nyinahin Market Junction; and Nyinahini-Kyekyewere and Kessekrom-Adiembra (both feeder roads).

Protective measures

Mr Oppong Nkrumah said the government has put in place measures to safeguard the environment during extraction of bauxite.

To assist this, it has established the Ghana Integrated Bauxite and Aluminum Development Corporation (GIBADC) to resolve any challenges that may arise. He added that the government was in the process of appointing boards and other officials to the GIBADC.

The Information Minister further said that GIBADC will ensure that the necessary joint-venture agreements with other developers in mining, processing and refining bauxite were signed before the end of this year.

Sino tranches

Mr Oppong Nkrumah said the government is looking forward to drawing down on two tranches of the Sinohydro deal by 2020. Ghana has 15 years to settle her side of the deal. This includes a three-year moratorium.

The Information Minister said strategic measures have been put in place in order not to repeat the mistake of the erstwhile NDC government regarding the botched $3bn China Development Bank (CDB) deal.

“What we have done differently with the Sinohydro transaction is that we have set up a permanent risk management committee that interfaces between the Government of Ghana and its agencies and the Chinese partners, from Sinohydro to Sinosure to all the companies on the Chinese side, so that whatever teething issues that will be coming up on regular basis will be flagged and addressed early enough,” he said.

He added: “It’s true that doing business with the Chinese has its own peculiarities, but the important thing is that we are signalled ahead of time of whatever risks or irregularity will be coming up, and adapt all the necessary corrections … and so we are learning from the CDB experience.”

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