Ghana and China sign Loan agreement

Accra, June 26, GNA - Ghana and the Export-Import Bank of China on Tuesday signed a 30-million dollar loan agreement for enhancing communication in the country's security agencies.

The loan, which has an interest rate of two per cent and is repayable in 20 years, would be used to acquire equipment and build a dedicated trunking communication system for the police, the Ghana armed forces, the prison service and other security agencies.


ZTE Corporation of China is the contractor implementing the project. Mr Kwadwo Baah-Wiredu, Finance Minister signed for Ghana, while Mr Li Jun, Deputy President of the Export-Import Bank of China initialled for his country.


It is the second loan agreement to be signed between Ghana and China in the area of communications within a year. The first agreement of 30 million dollars signed in June last year covered phase one of the Ghana National Communications Infrastructure Backbone Project.


Mr Baah-Wiredu said continuous peace and stability required an efficient and effective national security apparatus.


"The fact cannot be denied that effective national security is quintessential for ensuring political and economic stability in any country and communications is important in achieving this" he said. He urged the Bank to consider approving the remaining portions of the loan to enable the country complete the two projects on time. On financing for the Bui Hydro-Electric Power Dam Project, Mr Baah-Wiredu said the loan agreement had been finalised and was going through the Chinese government's internal approval procedures. He expressed the hope that the procedures would be hastened to enable the Loan Framework Agreement signed on time.

Mr Jun said the assistance would help boost information and communication technology in the country and further strengthen the ties between the two countries.


In April this year, Ghana and China amidst growing bilateral, technical and economic co-operation signed six major agreements.


These included the construction of the Bui Hydro-Electric Dam, a concessionary loan of 30 million dollars for the implementation of a dedicated communication system for the security agencies and the cancellation of 24 million dollars debt owed China.


The others are an Economic and Technical Co-operation grant, Tourism promotion and a feasibility study on the construction of a new office building for the Ministry of Foreign Affairs.


China, an emerging economic giant, is ranked third, in terms of investment inflows into Ghana.