General News of 2014-05-21

CDB loan: China makes more demands

The Ministry of Finance has confirmed to Citi Business News, the release of the 3 billion dollar Chinese Development Bank loan has stalled because China is making more demands from Ghana.

According to a Deputy Finance Minister, Kwaku Ricketts-Hagan, ‘they are asking for other things I cannot tell you, but they want more; that is why we have returned to the negotiation table'.

The CDB loan, which was signed in 2011, is yet to be fully disbursed.

A total sum of US$ 3 billion is expected from the China Development Bank, but as at January this year only $600 million of the loan had been disbursed although Ghana is paying commitment fees on the full amount.

About 12 key projects including the Gas processing plant, Western Corridor railway line and Accra Plains irrigation projects are hinged on the facility.

Some economists and financial analysts have called for the loan to be renegotiated.

But there are reports that China is demanding more oil; an additional 2,000 barrels of crude oil to the earlier 13,000 barrels a day agreed between them and government.

Though he will not confirm the oil demands, Kwaku Ricketts-Hagan speaking to Citi Business News said the Chinese are currently making more demands.

‘We signed the agreement, but there were some commitments that we were to adhere to and we are doing that, but they are asking for other things- it could be oil it could be other things; but I cannot tell you more but they are issues on interpretation of the contract and that is why we have returned to the negotiation table, but certainly the two parties are not happy’.