Ghana agrees US$2 billion barter deal with Sinohydro Group

Ghana has agreed a US$2 billion barter deal with Sinohydo Group Limited of China to open up a new financing model to undertake future projects in infrastructure.

Mr Ken Ofori-Attah, the Finance Minister, said under this Sinohydro would provide infrastructure – roads, bridges, interchanges, housing, rural electrification in exchange for Ghana’s refined bauxite.

Ghana is struggling with infrastructure deficit and this is estimated to be in the region of about US$30 billion, due mainly to the inadequacy of financial resources and that is what the agreement would help tackle.

The Minister was presenting the government’s 2018 mid-year budget review to Parliament.

He gave the assurance that, the agreement was not going to add up to nation’s debt stock, saying, it had flexible terms.

I will like to assure this august House that the US$2 billion of infrastructure to be provided by Sinohydro would not add to the debt stock and will involve a moratorium period of three (3) years to give Ghana the time to establish an aluminium refinery.

After the moratorium period, Ghana will fulfil its part of the barter agreement over another 12-year period.

He said a bauxite refinery would be established within the next three years in collaboration with selected private partners including at least 30 percent local participation.

The Minister spoke of major road projects that had been started across the country including the Pokuase Interchange, Tema Motorway Roundabout involving the construction of a three-tier interchange, Kasoa and Nungua bus terminals – improvement of existing parking and holding area, construction of a terminal building, walkways, paved road ways, toilets and its associated facilities.

As part of the Kumasi facelift projects, contracts have been awarded for projects including the asphalt overlay in Manhyia, Bantama and the road from Anloga Junction to Tech-Junction, he added.

Some of the development projects completed over the period include: construction of oil and gas enclave roads � construction of 10 kilometre road along the pipe line including the Amazure Bridge, and construction of two lane underpass to link Spintex and East Legon.

He said government had made huge investment to protect the sector, by ensuring that routine maintenance works had been carried out on some 16,494 km of trunk roads, 4,197 km of feeder roads and 679 km of urban roads.

Periodic maintenance works, comprising re-gravelling/spot improvement and resealing works had been done on 17 km, 60 km and 30 km of the trunk, feeder and urban road networks, respectively.

Minor rehabilitation works covering upgrading and the construction of culverts and drainage structures were carried out on 7 km, 135 km and 30km on the trunk, feeder and urban road networks respectively.

Source: Ghana News Agency