Ghana in need of $16bn

By Liberty Amewode, News Editor

Reliable estimates available to government reveals that the country needs to be
investing about US$1.6 billion per annum in order to deal with the
infrastructural inadequacies and to bring it into prosperity.

The investment, which is expected to run uninterrupted for 10 years, is what is
required to catapult the nation into middle income status by 2020.
And according to the Minister of Trade and Industry, Ms Hanna Tetteh, the
government is firmly committed to finding the resources to achieve this
objective.

Addressing journalists in Accra last Monday on behalf of government on the
outcome of the six-day official visit of President John Evans Atta
Mills to China early this month, she said various ministries, departments and
agencies (MDAs) have been developing their sectoral policy documents and
strategies to transform the country from a factor-driven economy to a
competitive economy with emphasis on developing new industrial sectors.
“We have especially focused on creating a national energy policy framework,
which would be the foundation of an oil and gas driven industrial architecture”,
she said, adding that the interventions, when executed, would transform the
country’s economy and the lives of the people.

Noting that this year marks fifty years of diplomatic relations between the
Republic of Ghana and the People’s Republic of China, the minister said the
official visit, and the interactions at the highest levels of Government,
allowed the two countries to celebrate the long and enduring diplomatic
relationship and are indeed old friends in a well established relationship.
The result, she added, is a series of bilateral assistance, in the form of
grants and donations, and commercial financing facilities offered the country by
the Chinese.

Outlining the benefits from President Mills’ visit, she said a grant agreement
to provide funds totaling US$12million has been signed for a number of projects
in response to specific requests made by the president.
She mentioned the accelerated provision of boreholes to improve potable water
supply for rural communities, the construction of a modern sports complex in
Cape Coast as well as the building of the Kotokraba Marketplace in Cape Coast as
the projects to be captured under this arrangement.

Another agreement for the provision of a US$20million interest-free loan to
support the construction of fish landing sites in selected coastal communities
has also been signed as a result of the visit and, according to the minister,
the Ministry of Food and Agriculture has selected Moree, Mumford, Winneba and
Senya Beraku, all in the Central Region, for the project.

Touching on the commercial financing facility, Ms Hanna Tetteh said Ghana and
China have also entered into an agreement for a comprehensive project
financing facility of $3billion with the China Development Bank (CBD).
This facility, according to the minister, is to finance comprehensive
infrastructure projects and more importantly, the components of the key
industrial projects that would help the country to create an oil and gas driven
industrial architecture and transform the economy.

She said the core projects that were being targeted include the Western
Corridor Gas Commercialization project and the Industrial Minerals Processing
Estate.

“The CBD funds will be used in the development of gas transmission pipelines
from Bonyere in the Western Region via Esiama/Cape Three Points to prospective
industrial and power generation customers to be located in
theSekondi-Takoradi area, Tarkwa/Prestea, Obuasi and Kumasi” she said, adding
that the project would be developed on a design-build-operate and transfer
basis.
On Industrial Minerals Processing Estate, the minister said it involves the
development of a cluster of mineralsprocessing industries in the new Free Zone
Export Processing Zone to be developed in Sekondi.
“A proposed new Alumina Refinery will anchor this Industrial Processing Estate,
which is to be developed as a joint venture between the Government of Ghana, the
China Africa Development Fund (CAD Fund) and Bosai Minerals Group of China who
are the majority owners of Ghana Bauxite Company”, she added.
According the minister, the proposed refinery will produce two million tons of
alumina per annum from Ghanaian Bauxite Deposits at Awaso and Kibi, saying that
it would allow the country to finally achieve its long time development
objective of establishing an integrated aluminum industry and make the most of
the country’s resources. The Business Analyst