Ghana in need of $16bn

By Liberty Amewode, News Editor

Reliable estimates available to government reveals that the country needs to be

investing about US$1.6 billion per annum in order to deal with the

infrastructural inadequacies and to bring it into prosperity.

The investment, which is expected to run uninterrupted for 10 years, is what is

required to catapult the nation into middle income status by 2020.

And according to the Minister of Trade and Industry, Ms Hanna Tetteh, the

government is firmly committed to finding the resources to achieve this

objective.

Addressing journalists in Accra last Monday on behalf of government on the

outcome of the six-day official visit of President John Evans Atta

Mills to China early this month, she said various ministries, departments and

agencies (MDAs) have been developing their sectoral policy documents and

strategies to transform the country from a factor-driven economy to a

competitive economy with emphasis on developing new industrial sectors.

“We have especially focused on creating a national energy policy framework,

which would be the foundation of an oil and gas driven industrial architecture”,

she said, adding that the interventions, when executed, would transform the

country’s economy and the lives of the people.

Noting that this year marks fifty years of diplomatic relations between the

Republic of Ghana and the People’s Republic of China, the minister said the

official visit, and the interactions at the highest levels of Government,

allowed the two countries to celebrate the long and enduring diplomatic

relationship and are indeed old friends in a well established relationship.

The result, she added, is a series of bilateral assistance, in the form of

grants and donations, and commercial financing facilities offered the country by

the Chinese.

Outlining the benefits from President Mills’ visit, she said a grant agreement

to provide funds totaling US$12million has been signed for a number of projects

in response to specific requests made by the president.

She mentioned the accelerated provision of boreholes to improve potable water

supply for rural communities, the construction of a modern sports complex in

Cape Coast as well as the building of the Kotokraba Marketplace in Cape Coast as

the projects to be captured under this arrangement.

Another agreement for the provision of a US$20million interest-free loan to

support the construction of fish landing sites in selected coastal communities

has also been signed as a result of the visit and, according to the minister,

the Ministry of Food and Agriculture has selected Moree, Mumford, Winneba and

Senya Beraku, all in the Central Region, for the project.

Touching on the commercial financing facility, Ms Hanna Tetteh said Ghana and

China have also entered into an agreement for a comprehensive project

financing facility of $3billion with the China Development Bank (CBD).

This facility, according to the minister, is to finance comprehensive

infrastructure projects and more importantly, the components of the key

industrial projects that would help the country to create an oil and gas driven

industrial architecture and transform the economy.

She said the core projects that were being targeted include the Western

Corridor Gas Commercialization project and the Industrial Minerals Processing

Estate.

“The CBD funds will be used in the development of gas transmission pipelines

from Bonyere in the Western Region via Esiama/Cape Three Points to prospective

industrial and power generation customers to be located in

theSekondi-Takoradi area, Tarkwa/Prestea, Obuasi and Kumasi” she said, adding

that the project would be developed on a design-build-operate and transfer

basis.

On Industrial Minerals Processing Estate, the minister said it involves the

development of a cluster of mineralsprocessing industries in the new Free Zone

Export Processing Zone to be developed in Sekondi.

“A proposed new Alumina Refinery will anchor this Industrial Processing Estate,

which is to be developed as a joint venture between the Government of Ghana, the

China Africa Development Fund (CAD Fund) and Bosai Minerals Group of China who

are the majority owners of Ghana Bauxite Company”, she added.

According the minister, the proposed refinery will produce two million tons of

alumina per annum from Ghanaian Bauxite Deposits at Awaso and Kibi, saying that

it would allow the country to finally achieve its long time development

objective of establishing an integrated aluminum industry and make the most of

the country’s resources. The Business Analyst