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General News of Tuesday, 12 November 2019

Source: Daily Guide Network

Phase 2 of Sinohydro deal to take off

The second tranche of the $2 billion Sinohydro deal has been approved and set to be disbursed early next year.

It follows an approval given by Sinosure, the Chinese Export and Credit Insurance Corporation.

Vice-President Dr. Mahamudu Bawumia who dropped the hint yesterday could not hide his excitement, saying “I’m happy that Sinosure has approved the first seal lot of the phase one; we are happy with the progress.”

During a meeting with the Vice Premier of China, Sun Chunlan, at the Jubilee House (Presidency) in Accra yesterday, the Vice-President said “there was a time when people thought it would not materialize, but it has materialized!” adding “the rest of the first phase will come through by March of 2020.”

The $2 billion Master Project Support Agreement (MPSM) was signed between the Government of Ghana and Sinohydro Corporation Limited for the construction of infrastructural projects in Ghana by President Akufo-Addo and Chinese President Xi Jinping in September 2018.

Parliament in July approved a $2 billion Master Project Support Agreement (MPSA) between Ghana and Sinohydro Corporation Limited for construction of priority infrastructural projects.

The facility, a project financing arrangement, was laid in Parliament by Mr. Kwaku Kwarteng, a Deputy Minister of Finance.

The barter trade facility will be used to construct roads, hospitals, houses, rural electrification, interchanges, bridges and other government priority projects in spite of failed attempts by the opposition Members of Parliament (MPs) to shoot it down.

Considering how far the deal has come, Dr. Bawumia thanked the government and people of China for the support.

He also thanked the Chinese government for a 300 million Yuan grant and a debt write-off of 250 million Yuan to Ghana, both totalling 550 million Yuan, saying “we are most appreciative.”

He also expressed gratitude for the support in the technical and vocational institutes that the Chinese government was helping Ghana to put together which was launched yesterday.

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