GHANA, INDIA SIGNA AGREEMENTS FOR TWO LOANS TOTALLING 422.87 MLN USD

Ghana has signed two separate loan agreements with the Export Import Bank of India totalling 422.87 million US dollars for financing the construction of a railway line and a sugarcane development and irrigation project.

The first agreement for 398.33 million USD in buyers credit will be used to finance the construction of the 84.8-kilometre Tema to Akosombo railway line while 24.54 million USD will go into a sugarcane development and irrigation project.

The Sugarcane Development and Irrigation facility has an interest rate of 1.5 per cent and a maturity of 25 years while the Tema to Akosombo facility has a maturity of 12 years and comes at the interest rate of the six-month London Interbank Offered Rate (LIBOR) plus 1.75 per cent per annum.

Deputy Finance Minister Mona Quartey signed the agreements on behalf of Ghana while Pushpesh Tyagi, a representative of Exim Bank of India, signed for the bank.

Quartey said the agreements marked another milestone in the process that would lead to a significant improvement in the transport sector, especially the link between Tema Port, some 25 kilometres east of Accra, to the Lake Transport Network at Akosombo, as well as provide enough raw material for the sugar factory at Komenda.

The railway line project involves the design and construction of 84.8 kilometre of a Standard Gauge Railway line from the Tema Port to Akosombo, including four railway stations and design and construction of railway terminals at Tema and Akosombo, including the provision of operational facilities and loading equipment.

Source: NAM NEWS NETWORK.

   

Related Posts