14 July 2017

Ghana Signs $4bn MoU With Chinese Company

The Government of Ghana has signed a Memorandum of Understanding (MOU) with Sinohydro Corporation Limited for the execution of a number of key projects across the country.

Among others, the Chinese state-owned company will undertake a Multipurpose Hydro Project at Pwalugu; a Volta Lake Transportation Project; an Accra Flood Prevention Project, as well as other priority infrastructure projects including garbage treatment plants, solar power plants, and rail projects, at an estimated cost of $4 billion.

This brings to $19bn, the commitments made by the Chinese government and its agencies following the acceptance of the financing model proposed by Vice President Dr Mahamudu Bawumia, which involves the leveraging of a fraction of Ghana’s bauxite deposits, during his recent State visit to the People’s Republic of China.

The MoU was signed on behalf of the Government of Ghana by the Senior Minister, Mr Yaw Osafo-Maafo, while Mr Chen Zhenrong, Representative of Sinohydro in Ghana, initialled for his company in Accra on Wednesday July 13, 2017.

“Sinohydro has made representations to Ghana that the financing model proposed by Ghana is acceptable to her and that it has the technical capability, the competencies, the experience, the financial capacity and other resources to finance and execute the Projects proposed in this MoU and to be determined totaling up to US$4 Billion”, part of the MoU read.

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