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$2bn Sinohydro infrastructure project to start in early 2019

Road projects under the two billion dollar Sinohydro infrastructure deal will begin by the first quarter of 2019.

This is according to the Minister for Roads and Highways, Kwesi Amoako Attah, who said the first tranche of 500 million dollars would hit the government’s account before the end of 2018.

The Sinohydro deal is a Master Project Support Agreement between the government of Ghana and Sino Hydro Corporation Limited of China.

Projects such as new interchanges in Tamale in the Northern Region, and Takoradi in the Western Region, as well as other road projects listed in the Mid-Year Budget Review, are to constructed under the project.

Speaking to Citi News, Mr. Amoako Attah said every region will have its share of the money.

“I can confirm that we are going to have the first tranche before the end of the year, and the first tranche of it which is a quarter of 500 million dollars is hitting our account before the end of year, and we are going to use it to finance a number of roads, we are going to build bridges across the nation for the first time. From the first quarter of next year, we are going to construct interchange next year in Tamale, Takoradi is also going to see its first interchange under this deal,” he said.

Background

The government sealed an agreement with the Chinese government to sell refined bauxite to China’s Sinohydro Group Limited and in return receive $2 billion to undertake infrastructure projects in the country.

The agreement among others will fund the infrastructure projects in Ghana, including roads, bridges, interchanges, hospitals, housing, railway development as well as rural electrification.

Critics say the agreement must be reviewed because it is not in the interest of Ghana and would instead add up to Ghana’s debt stock, a claim government had rejected.

The Minority in Parliament had written to the International Monetary Fund over the issue.

According to the Minority, the $2 billion bauxite deal is a loan despite attempts by the government to make Ghanaians believe it is a barter arrangement that would not bloat the country’s debt stock.

According to the Minority, the agreement is similar to the $3 billion petroleum-based China Development Bank (CDB) loan agreement the country went for when it wanted to build its gas infrastructure.

However, the World Bank in a response clarified that the facility was not a loan.

 

source: citinewsroom

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