The Director of Special Projects and Investor Relations at the Vice President’s Office Dr Mutaka Alolo explained why some projects under the $ 2 billion Synohydro deal have not started,
According to him, the deal has been structured so that projects are phased out with different start days to ensure that when repayment is due Ghana will have enough bauxite proceeds for repayment.
Speaking on Top Story on Monday, he said that âthis transaction is structured on the back of bauxite and refined bauxite, so as we work to get these projects off the ground, we also need to be aware that the repayment date will arrive soon. “
âSo we need to work simultaneously on our integrated aluminum bauxite industry. Thus, it is structured in such a way that we are sure that by the time the first repayment is due and the subsequent repayment is complete, the bauxite deal would have been made.
The explanation follows a documentary by JoyNews what questions, where was Sinohydro’s $ 2 billion money to meet Ghana’s infrastructure needs.
As part of a memorandum signed between Ghana and China in 2018, Beijing will finance $ 2 billion in rail, road and bridge networks, and in return, China will have access to 5% of Ghana’s bauxite reserves. .
On November 21, 2018, Information Minister Kojo Oppong Nkrumah announced that the first $ 649 million tranche of the $ 2 billion facility had been made available to Ghana. However, three years later, only about $ 100 million of that amount was released in Ghana.
Meanwhile, many projects, including the Adenta-Dodowa road, which was one of ten lots approved under the China-sponsored Sinohydro deal, remain on hold.
However, Mr Alolo says that six of the 10 projects that were initially signed have started and are in different stages of progress.
He said the $ 100 million released was used for these projects, adding that as the projects progress, the bank will release more money for them.
âIf you look at the first 4 projects, the Tamale Interchange, the Downtown Cape Coast and Western Region Roads, the Ashanti and Western Interior Roads and the Eastern Corridor, we started them from December 2019. “
âThe deal is structured so that the money is available to you, it’s like any infrastructure finance project. They don’t give you the money to keep and use, the bank keeps the money as the project progresses, they pay. The over $ 100 million we’re talking about is the amount of work that has been done on the ground on all of the projects.