17
Mon, Dec

MPs APPROVE ANOTHER $646M IN SINOHYDRO DEAL

Business & Economy

Parliament yesterday approved the first phase of the US$2 billion Sinohydro agreement, setting terms and conditions for deferral of payment under the engineering, procurement and construction (EPC) contract in respect of construction and rehabilitation of selected major roads and interchanges in Ghana.

Parliament yesterday approved the first phase of the US$2 billion Sinohydro agreement, setting terms and conditions for deferral of payment under the engineering, procurement and construction (EPC) contract in respect of construction and rehabilitation of selected major roads and interchanges in Ghana.

 

The move is in line with the government’s recognition of the importance of good road infrastructure to the country’s rapid socio-economic development.

Under terms and conditions governing the agreement, the EPC amount, including the financing cost, is US$646.64 million. It has a tenor of 15 years, a grace period of three years and a 12-year repayment period.

NDC propaganda

The Minority side, led by the ranking member of the finance committee, Cassiel Ato Forson, disputed the terms and conditions for the facility.

He was unhappy about the interest rate, the management free, the commitment fee and the insurance premium, saying they could have been lower.

The Minister for Information, Kojo Oppong Nkrumah, urged the Minority to read the details of the agreement closely and to cease spreading propaganda.

He stressed that the facility will help to provide a large part of the infrastructure that the country needs, especially in the roads sector, in order to develop.

Major projects

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

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

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.

Accra, Ashanti, Central, Western

Among routes 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 works are Manhyia, Suame, Tafo-Pankrono, Asokwa, Kwadaso, Oforikrom, Subin, Nhyiaeso, Bantama and Asante Mampong.

For the Western Region and Cape Coast, among areas covered are Akotokyir, the Amamoma area, Abura New Community and the Polytechnic neighbourhood (all in Cape Coast), Apawusika and Prestea town.

Beneficiary town and roads from among selected projects in the Ashanti and Western Regions are Achiase, Wansamere-Awisasu, Mpasatia town and Nyinahin-Adupri (feeder road). The rest are Nyinahin-Sereso, Timpon-Achiase Junction, Nyinahin town, Nyinahin Market Junction, and Nyinahin-Kyekyewere and Kessekrom-Adiembra (both feeder roads).

Barter facility

The Master Project Support Agreement (MPSA) is a barter facility under which Sinohydro will execute various contractual works for Ghana, with the state repaying the cost of the facility in refined bauxite (alumina/aluminium).

The terms and conditions of the agreement include an advance payment of 15 per cent of the EPC contract, to be prefinanced by Sinohydro.

Bauxite mined by the Chinese will be refined by the Ghana Integrated Bauxite and Aluminium Development Authority.

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