China releases funds for phase one of Sinohydro project

Funds for the first tranche of the ‘bauxite for development’ barter agreement, popularly known as Sinohydro deal, signed between the Government of Ghana and the People’s Republic of China has been released, the Vice President of the Republic, Dr. Mahamudu Bawumia has disclosed.

Speaking in Accra on Monday, 11th November 2019 at the Jubilee House, Vice President Bawumia indicated that projects under the agreement have been grouped in Lots, and their review and approval are ongoing.

Vice President Bawumia made the disclosure when he led a government delegation including Chief of Staff, Mrs Akosua Frema Osei-Opare and Ghana’s Ambassador to China, H.E Edward Boateng, for bilateral talks with a Chinese delegation led by H.E Sun Chunlan, Vice-Premier of the State Council of the People’s Republic of China, who is on a three day official visit to Ghana, at the seat of Government.

“I want to thank you and the Government of China on our Sinohydro facility. I’m happy that Sinosure (China Export & Credit Insurance Corporation) has approved the first lot of Phase One. We are happy with the progress. There was a time when people thought maybe it would not materialize but it has materialized and we hope that the rest of the first phase will come through by March of 2020,” Vice President Bawumia stated.

Major progress has been made, Vice President Bawumia stated, with the China and Ghana governments determined to ensure the success of the barter deal, which would see the leveraging of a fraction of Ghana’s bauxite to undertake a massive overhaul of her infrastructural, industrial and agricultural base.

Vice President Bawumia expressed the Government’s appreciation for the financial support China has offered to Ghana, made up of a 300 million Yuan (approximately Ghs 236.18/$42.79m) grant and debt write off of 250 million Yuan (approximately Ghs 196.82m/$35.66m).

“We are also very grateful for your support in the vocational and technical institutes that you are helping us to put together which you are helping us to launch today. It is important because Ghana wants to learn from China, and we know that in China, the development of the skill of the people is very important. This is why the technical and vocational training is very important and why your support is most appreciated.”

The $2 billion Master Project Support was agreed between Ghana and China in 2018 to address major infrastructure challenges in the country.

Under the deal, Sinohydro Group Limited of China will provide the infrastructure of the government’s choice in exchange for Ghana’s refined bauxite.

China commends Ghana

H.E Sun Chunlan commended the Nana Akufo-Addo administration for its commitment to the development of the nation, which has informed the implementation of such programmes Planting for Food and Jobs, One District One Factory, One District One Warehouse, and the Free Senior High School, which would have a direct, major impact on lives.

“Since I arrived yesterday, I have been impressed with the warmth of your government and the policies you are implementing to develop Ghana. I wish you all the best.”

Breakdown of phase one projects

The first phase of the project, costing $646.6 million begins with the Tamale Interchange project.

The projects under Phase 1, which have been approved by Parliament are:

Lot 1 – Construction of Accra Inner City Roads. A total of eighty-four (84) kilometres of roads located in Trobu, Anyaa-Sowutoum, Dome-Kwabenya, Adenta and Teshie will be constructed;

Lot 2 – Construction of Kumasi and Mampong Inner City Roads. A total of one hundred (100) kilometres of inner-city roads will be constructed in Kumasi and Mampong. In Kumasi, the affected road networks are in Manhyia, Suame, Tafo Pankrono, Asokwa, Kwadaso, Oforikrom, Subin, Nhyiaeso and Bantama;

Lot 3 – Construction of the Tamale Interchange;

Lot 4 – Construction of the PTC Roundabout Interchange, in Sekondi-Takoradi, the first interchange in the western part of our country;

Lot 5 – Dualisation of the Adenta-Dodowa Road. Fourteen (14) kilometres of the Adenta-Dodowa Road will be dualised so as to reduce congestion, improve road safety, and reduce travel times on the corridor;

Lot 6 – Construction of Sunyani Inner City and Berekum Township Roads. A total of thirty-nine (39) kilometres of roads will be constructed in Sunyani and Berekum Township. In Sunyani, twenty-nine (29) kilometres of inner-city roads will be constructed, whilst Berekum Township will see ten (10) kilometres of its roads constructed;

Lot 7 – Construction of Prestea Township and Cape Coast Inner City Roads. A total of thirty-two (32) kilometres of roads will be constructed in Cape Coast and Prestea. In Cape Coast, twenty-two kilometres (22) of inner-city roads will be constructed, whilst Prestea Township will see ten (10) kilometres of roads constructed;

Lot 8 – Upgrading of Selected Feeder Roads in Ashanti and Western Regions. Sixty-eight (68) kilometres of feeder roads in Ashanti and Western North regions will be rehabilitated. The roads that will be rehabilitated are mainly in communities that have bauxite deposits;

Lot 9 – Rehabilitation of Akim Oda-Ofoase Road. This lot involves the rehabilitation of the thirty-eight (38) kilometre Akim Oda-Ofoase road, which is part of the trunk road network, IR3, and passes through several rural communities that connect Akim Oda to Ofoase;

Lot 10 – Construction of the Hohoe-Jasikan-Dodo Pepesu Road of the Eastern Corridor. This will involve the construction of the sixty-six (66) kilometre section of the Eastern Corridor Road between Hohoe to Jasikan and Dodo Pepesu.

Source: ghanaweb.com