Ghana - China Exim Bank Sign Financing Agreement for Bui Dam Project

The Government of Ghana and the China Exim Bank today signed a US$292 million financing agreement for the construction of the Bui Dam.

The facility constitutes the first portion of of a hybrid facility of US$622 required for the construction of the Bui Dam and other ancilliary facilities.

Hon. Dr. Anthony Akoto Osei, Minister of State at the Ministry of Finance and Economic Planning, signed for Ghana whiles Mr. Li Ruogi, President of the China Export-Import Bank (EXIM) initialed for the Bank. The ceremony was witnessed by H E Vice President Aliu Mahama, Mr. Kwodwo Mpianim Chief of Staff and other Ministers.

In his remarks, Vice President Aliu noted that the US$ 562 million being extended to Ghana by China represents one of the biggest credit facility ever obtained from a single source in the history of Ghana.

He said the implementation of the Bui Project constitutes one of the most pragmatic long-term measures ever taken to solve Ghana's energy problems. "We are most grateful to the Government of the Peoples Republic of China and the China EXIM Bank for the kind gesture"

He also expressed the government's appreciation to the Presdient of the Bank for personally ensuring the approval of two concessionary loans amounting to US$30 million for the first phases of the National Communciations Backbone Infrastructure and the Dedicated Communication System for Security Agencies Projects for Ghana.

The Bank, he noted, has also signed an MOU for a number of priority projects for the country, these are; the Kpong Water Supply Extension Project, the Accra-Kumasi Road, the Rural Telephony Project and the Distance Learning Programme of the University of Cape Coast.

Vice President Aliu said the Kpong Water project in particular when executed would go a long way to ease the acute water shortage in the northern parts of Accra.

He invited companeis from China to join in the exploration of oil as well as the expoitation of iron ore deposits in the couuntry.

The President of the China EXIM Bank said the signing ceremony put the two countries on a new level of development cooperation.

He said both countries understand clearly that infrastructural development is key to development in general hence their support for the project. This he stressed would go a long way to improve the standard of living citizens of both countries.

"With our common efforts, we can make the dream of better life for people of both countries come true and create a much more peaceful and prosperous world for all", he added.

Hon. Dr. Osei in his remarks said China is one of the largest and most active development partner of Ghana.

He said China EXIM Bank is in the process of opening a Branch Office in Accra to cater for West and Central Africa.

"These are clear manifestation of the unprecedented fast rate at which the relation between Ghana and the EXIM Bank and for that matter the Peoples Republic of China is growing. These also amply demonstrate the increasing confidence of China EXIM Bank and the Peoples Republic of China in Ghana".

Dr. Osei expressed the governemnt's appreciation to the Bank for the loan and appealed to the Ministry of Commerce of China who have the mandate to give final approval for the remaining US$270 million concessionary loan to hasten to its internal approval process for the loan.

Mr. Kofi Adda, Minister of Energy gave the assurance that his Ministry would give every support to make the project a reality adding that the sigining signified the fact that everything is in place for construction work to begin.

The Minister of Communications Mr. Aggrey Ntim expressed the governemnt's appreciation for the support from the EXIM Bank for the National Communciations Backbone Infrastructure, the Dedicated Communication System for Security Agencies Projects for Ghana and the rural telephony project.

He said in relative terms Ghana is ahead of African countries in having a telephony density of 34% as compared to the rest of Africa which is around 14%, however the government policy is provide telephoy to all citizens of the country.

Currently, 6.6 million Ghanaians have assess to telephones, this the governemnt hopes to increase to 10.6 (50%) in the next couple of years to enable Ghana become the ICT hub of Africa.

On the progress of work of the National Communication Backbone Project, Mr. Ntim said the about 50% of the fibre optic project has been laid.

However, under the current agreement, this would end at Tamale and therefore appealed for more financial assistance for the project to be extended to northern parts of Ghana and the neigbouring countries.