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Ghana-China to barter bauxite for infrastructure projects

Ghana-China to barter bauxite for infrastructure projects

The Government of Ghana has announced a new funding model expected to improve infrastructure in the country through a barter system that will allow a Chinese firm ,Sinohydro Group Limited to develop specific projects in Ghana at no cost but in return for refined bauxite.

Finance Minister,Ken Ofori Atta announced this measure in his mid year review budget presentation to parliament on Thursday. The package when rolled out should see the Sinohydro build bridges,interchanges,hospitals, houses and do rural electrification among others “To bridge this gap, a barter agreement, which aims to open up a new financing
model for Ghana in undertaking future projects, has been reached with Sinohydro
Group Limited of China, to provide US$2 billion of infrastructure including roads,
bridges, interchanges, hospitals, housing, rural electrification, in exchange for
Ghana’s refined bauxite”. Ghana has 3 years to establish the refinery and 12 years to fulfill its part of the bargain.

The 110 km Jasikan- Dodi Pepesu to Nkwanta stretch of the Eastern Corridor road is earmarked to benefit from the agreement.

The budget has also made provision for the development of railway network that will connect Ghana to Burkina Faso through Ho.”The Accra to Ouagadogou rail network, another BOT project, has 11 entities
shortlisted, with the procurement process scheduled to complete this year for
construction to commence in the first quarter of next year. This line will serve the
Eastern part of Ghana and will go through Ho, Hohoe, Yendi, Tamale, Bolgatanga
and Paga”
The budget has imposed tax on luxury vehicles,an investment of GH 700 million towards the planting for food and jobs under the Ministry of Food and Agriculture,Free Senior High School among others.

 

Source: Rustum Senorgbe/ Volta Premier Fm

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