Signing of 750m Eurobond

The Minister for Finance and Economic Planning, Mr. Kwadwo Baah-Wiredu, has noted that unnecessary bureaucracies that have engulfed the implementation of development projects in the country will no longer be tolerated especially with the execution of projects under the 750 million dollar Eurobond just acquired.

He observed that such practice of officialdom have adversely thwarted the efforts of government in the judicious use of previously acquired loan facilities in terms of project implementations.

In an interview with this reporter after signing Ghana into International Capital Market in London, last week, Mr. Baah-Wiredu reiterated that ?there is a great difference between this loan facility and all others that we have over the years acquired.?

The difference, he noted, was the interest on this starts right from here and ?attracts interest every minute.? He said it was money for serious business minded people who want pressing returns on their investment and that the nation cannot wait to be found wanted in terms of servicing the loan and the final payment in the next 10 years.

Mr. Kwadwo Baah-Wiredu, who lead the Ghanaian delegation in signing the bond at London?s City Point, (London's largest commercial office building in terms of rentable floor space and second tallest building upon completion in 2000), observed ?we are at our highest peak now.?

It is expected that exactly on the 4th of October, 2017, the 10-year bond will be paid off with an interest rate of 8.5 percent every six month.

The Minister cited a number of instances where projects have either not completed on time or did not start on time. He mentioned the Accra ? Asankragua, Tetteh Quarshie- Madina, Achimota- Ofankor among other roads that faced unbending formalities which later appeared to be red tapes in their implementations.

He said it took civil servants and some projects engineers between six months and a year before they could normalised things for 200 million dollar dept relief from the IMF to be used on projects earmarked under the fund. ?That way of doing things cannot be applied to this loan.? He emphasized.

According to him, all preparations regarding projects to be funded by the loan were long completed in January this year and physical implementers have no excuse to unnecessary delay any project.

Mr. Baah-Wiredu noted that the loan is primarily, to ?help eliminate the bottlenecks that have hampered the smooth advancement of our economy over the years.?

He identified some of these bottlenecks in the socio-economic development of Ghana as energy, transportation and marketing of agricultural produce. To this end, the Finance Minister acknowledged that the loan will be dispensed to provide enough and quality energy for the country.

?We are going to use part of this money for the continuation of the massive road building drive we are undertaking.? He added. ?This is basically for generation, transmission and distribution of energy will be paramount under this scheme, more roads will also be built while the rail lines will also be looked at.? Mr. Baah-Wiredu emphasised.

?Our farmers carting the farm produce to the marketing centre will have to have smooth transportation and marketing. The factory productions must also be smooth without energy interruption, and these are basically where we are looking at?. The minister said.

The Finance Minister observed for the country to enter into the International Capital Market, it calls for individual and collective economic and financial disciple from all. ?We are therefore going to ensure that revenue matches the expenditure? He noted.

He said there ids the urgent need for the nation to expand its economic activities despite all bottlenecks it is faced with currently. This is because rating agencies who rated the country to prior to the selling of the 750 million bond will have to tell the whole world that ?Ghana is ready and worthy to for the Capital Market now and in the future.