Ghana, Brazil financial cooperation bears its first fruit

The Brazilian Government, through the Brazilian National Bank of Social and Economic Development (BNDES), has made its first disbursement of official funds to Ghana.

This disbursement is in relation to the construction of a 3,700m2 state-of-the-art hangar, and 1,000m2 of office and workshops at the Accra Air Force Base by Contracta, a Brazilian company.

The Accra Air Base project, valued at US$17,000,000, will be receiving a total of US$13,644,200.00 (around 80% of the total) from the Brazilian Government. Thirty four percent (US$4,642,200) of this total contribution has already been delivered in this first disbursement, with the remaining to follow within the project’s duration.

With estimated delivery in July 2014, Contracta has already finalised the full earthworking of the site and has begun work on the foundation. Meanwhile, the production of all metal structures and other equipment has already commenced in Brazil.

The contract also provides for delivery of various equipment -- such as fuelling and fire-fighting trucks, and buses -- to the Ghana Air Force.

The arrival of these funds is a milestone in Brazil-Ghana cooperation, as it marks the first fruit of conversations started between Presidents Luiz Inácio Lula da Silva and John Kufour during the first Africa-South America (ASA) summit in 2006, in which it was agreed that Brazil and Ghana should work together with a view of promoting infrastructure development in Ghana based on Brazilian capacities and technology.

In 2008, official discussions were started between both Governments regarding Brazilian official loans and credit facilities in respect to the commitment made by both presidents.

The initial focus was on the possibility of providing concessional credit for the construction of hydroelectric dams on the Oti and White Volta Rivers.

Negotiations later revolved around financing the construction of tranches 5 and 6 of the Eastern Corridor project -- by a joint-venture between the Brazilian companies Andrade Gutierrez and Odebrecht (a US$242,190,692 loan by Brazil) -- and also included the aforementioned works at the Air Force Base in Accra, by Contracta.

From 2008 to the first disbursement, the governments of Brazil and Ghana have worked unwaveringly to develop the appropriate framework for the countries’ financial cooperation. The Government of Brazil recognises the work that has already been done establishes the basis for increasing cooperation between Brazil and Ghana, particularly in the financial and economic fields.