Government of Ghana and Chinese Eximbank of China sign Loan Agreement.
The Government of Ghana and the Eximbank of China have signed a loan agreement worth $30 million. The loan facility is to help build a fiber optic which will serve as a backbone to the CDMA 2000 Go Ta Digital Trunking Communication System for the Security Agencies project, commonly called the Dedicated Communication System.
Speaking to the pressmen, H.E. Li Jun, Deputy President of Eximbank of China said he was honoured to be part of the signing of the agreement and hopes that this will go a long way to strengthen the relationship between the two countries. He hoped that, the project will be a success and most beneficial to the target beneficiaries.
The Interior Minister, Hon. Kan-Dapaah on his part thanked the bank and assured them
that the signing of this agreement will pave the way for the development of a good and reliable communication for the security agencies.
He also thanked the Ministry of Finance and Economic Planning for all the effort expended to make the signing a reality for Ghanaians.
Hon. Kwadwo Baah-Wiredu, Minister for Finance and Economic Planning told the press that “the fact that cannot be denied that effective national security is quintessential for ensuring political and economic stability in any nation. Ghana in the past seven years has achieved remarkable progress in ensuring internal security and peaceful environment”.
He further reiterated that “sustaining this internal and international security is critical to the continued growth and development of this country. The sustainability of the peace and stability so far achieved, however, requires an efficient and effective national security apparatus”.
The terms of the concessionary loan are: Interest rate of 2% per annum, maturity period of 20 years and a grace period of 5 years. The other terms include a Commitment fee of 0.50% and a management fee of 0.50%.
This agreement is the second concessional loan agreement signed between the government of Ghana and the China Eximbank in respect of communications projects within one\ year.
