I hope they have some good rationale for shouting Yeah, Yeah for this one.
I hope they have some good rationale for shouting Yeah, Yeah for this one.
Chaos 2016 8 years ago
Hope the minority were wide awake with their two gaanigaani eyes!
Hope the minority were wide awake with their two gaanigaani eyes!
Kofi 8 years ago
Why this loan and who pays for this. Ghanaian must remember that it will not be the NDC Govt but subsequents ones.
Why this loan and who pays for this. Ghanaian must remember that it will not be the NDC Govt but subsequents ones.
Ekow Samuel. 8 years ago
They have to make good use of it and it is good to matain the ports ghana,God bless you oman Ghana!.
They have to make good use of it and it is good to matain the ports ghana,God bless you oman Ghana!.
Public Interest Citizen 8 years ago
B&T, I respect your newspaper. Please check your facts on the KBC/ONDD offer to GPHA before you peddle half-truths to the public. The all-in costs for this 10 year facility is more than 9.5 % if you add all the front-end load ... read full comment
B&T, I respect your newspaper. Please check your facts on the KBC/ONDD offer to GPHA before you peddle half-truths to the public. The all-in costs for this 10 year facility is more than 9.5 % if you add all the front-end loaded costs, the ONDD insurance premium and other charges and fees.
How did this bad deal manage to clear at the Finance Committee of Parliament and then passed at the full house? Where were the NPP Members of Parliament on the Finance Committee of Parliament? No wonder the President of the Republic is always taunting the NPP Members in Parliament with remarks like “were the NPP Members of Parliament sleeping?’’
This grant of a Sovereign Guarantee to KBC/ONDD/Jan De Nul to support GPHA’s Takoradi Port Project is completely at odds with Mr. Terkper’s and GoG own home- grown debt management strategy as presented in the 2016 Budget Statement to the Parliament of Ghana.
Mr. Terkper, be prepared to offer tangible reasons for this move to the international investor community when you go on your road shows for the next Eurobond capital market offering. Your professional credibility is at stake with this bizarre move.
For those who care to know the facts, OPIC has offered a $400 Million long-term facility to GPHA to fund the completion of the Expansion & Modernization of Takoradi Port WITHOUT a Sovereign Guarantee requirement for a 25 year repayment term with 10 years grace period at an all-inclusive fixed interest rate of 6.25%.
Under the OPIC financing arrangement, GPHA is borrowing on their own balance sheet without any guarantee whatsoever from GoG or Parliament.
On the other hand, the KBC/ONDD /Jan De Nul financing package is to be supported with a Sovereign Guarantee from GoG/Parliament of Ghana as a condition of approval.
If any State Owned Enterprise (SOE) in Ghana deserved to be weaned off the public debt burden, I dare to say that GPHA would be top on that list. So why burden the already bloated public debt with this additional and unnecessary liability, when it could be completely avoided?
What amazes me is that GPHA engaged Deloitte to independently prepare a Financial Model which has clearly shown that any financing arrangement for GPHA without a grace period of at least 7 years is a recipe for default. A Moody’s corporate credit rating report on GPHA supports the Deloitte position on GPHA’s debt service capacity and sustainability as a going concern. The KBC/ONDD/Jan De Nul deal offers only 4 years grace period. Finance Minister Seth Terkper, Transport Minister Gzifa Attivor, the GPHA Board and all the important stakeholders are all aware of this predicament and yet appeared to have approved a deal with terms and conditions that sets up GPHA to default on the KBC/ONDD loan.
The Deloitte Financial Model and Moody’s credit reports on GPHA’s capacity to borrow suggest GPHA is likely to default on the KBC/ONDD loan. GoG will be called upon to make the payments when GPHA defaults on the KBC/ONDD loan.
On the other hand, the independent Deloitte Financial Model clearly demonstrates that GPHA can comfortably service the OPIC financing package as structured.
The other worrisome element is that the KBC/ONDD loan amount is insufficient to complete the Takoradi Port Expansion works and the terms and conditions are too onerous.
KBC/ONDD is offering 160 million Euros as against $400 million being offered by OPIC. From all the economic, engineering and market reports and analysis available on the project, 160 million Euros would not buy GPHA the scope of works necessary and anticipated under this phase to bring in sufficient revenue for the loan repayment. In plain English, GPHA will require more than 160 million Euros for the additional works to generate reasonable income for loan the repayment. What makes it more unsettling is that OPIC indicated their willingness to accommodate the scope of works anticipated under the KBC/ONDD/Jan De Nul deal as part of the OPIC $400 million financing package to GPHA without a Sovererign Guarantee.
The big question and the elephant in the room is: Why did SETH TERKPER approve this BAD KBC/ONDD/Jan De Nul deal when GPHA has better options on the table?
The only logical inference any reasonable and objective observer would deduce from this bizarre move by Seth Terkper is that there were other motivating factors other than prudence at play. What else would explain his sudden U-turn from his oft-repeated and touted mantra of NO SOVEREIGN GUARANTEE for SOEs as part of his public debt management strategy which he has been preaching since he assumed office as the Minister of Finance?
Finance Minister Seth Terkper should justify his rationale for recommending and forwarding this Sovereign Guarantee to Parliament for approval when GPHA has better financing options on the table WITHOUT Sovereign Guarantee requirement?
As for the NPP Members on the Finance Committee of Parliament, their next move is very predictable: hit the airwaves and the news stands with calls for Parliamentary investigations as to why the KBC/ONDD facility was approved. All these noise when they could have at least attempted to prevent it from happening in the first place!
I tend to agree with the President’s remarks on NPP Members of Parliament on this one: Were you asleep?
United Ghana 8 years ago
A very illuminating piece. Thanks. I wasn't aware of this because of this useless, corrupt Mahama govt's lack of transparency. As for NPP MPs, the less said about them, the better.
A very illuminating piece. Thanks. I wasn't aware of this because of this useless, corrupt Mahama govt's lack of transparency. As for NPP MPs, the less said about them, the better.
Ben 8 years ago
People must be shot in GH
People must be shot in GH
Kofi Bediako, 8 years ago
Why should it always be loans financing almost every project in Ghana.Dont we have the wisdom to accumulate wealth and finance a project.
We have become a nation going round the world begging.The
seat of govt has to be ... read full comment
Why should it always be loans financing almost every project in Ghana.Dont we have the wisdom to accumulate wealth and finance a project.
We have become a nation going round the world begging.The
seat of govt has to be financed by india with only fifty million dollars.What a shame. The world will look down upon us until we are able to stand on our own at least for such minor projects.
kweku Ashaiman 8 years ago
with some organizations like GPHA they know what to do to bring investment to develop the sea ports of Ghana with out relying on the government money. and this is what I expect some government organization to do for a bette ... read full comment
with some organizations like GPHA they know what to do to bring investment to develop the sea ports of Ghana with out relying on the government money. and this is what I expect some government organization to do for a better Ghana.
Brofo 8 years ago
Always approving loans and announcing it to the public.... fools
Always approving loans and announcing it to the public.... fools
ASA 8 years ago
3/4 of this loan will end up in peoples' pockets.
3/4 of this loan will end up in peoples' pockets.
kwesi aniki frm takdi 8 years ago
it should reduce the unemployment which is now a canka in this country the youth we are calling for it
it should reduce the unemployment which is now a canka in this country the youth we are calling for it
Ottawa 8 years ago
I hope this time NPP parliamentarians did not sleep and Read the documents very well before voting for it approval.
I hope this time NPP parliamentarians did not sleep and Read the documents very well before voting for it approval.
I hope they have some good rationale for shouting Yeah, Yeah for this one.
Hope the minority were wide awake with their two gaanigaani eyes!
Why this loan and who pays for this. Ghanaian must remember that it will not be the NDC Govt but subsequents ones.
They have to make good use of it and it is good to matain the ports ghana,God bless you oman Ghana!.
B&T, I respect your newspaper. Please check your facts on the KBC/ONDD offer to GPHA before you peddle half-truths to the public. The all-in costs for this 10 year facility is more than 9.5 % if you add all the front-end load ...
read full comment
A very illuminating piece. Thanks. I wasn't aware of this because of this useless, corrupt Mahama govt's lack of transparency. As for NPP MPs, the less said about them, the better.
People must be shot in GH
Why should it always be loans financing almost every project in Ghana.Dont we have the wisdom to accumulate wealth and finance a project.
We have become a nation going round the world begging.The
seat of govt has to be ...
read full comment
with some organizations like GPHA they know what to do to bring investment to develop the sea ports of Ghana with out relying on the government money. and this is what I expect some government organization to do for a bette ...
read full comment
Always approving loans and announcing it to the public.... fools
3/4 of this loan will end up in peoples' pockets.
it should reduce the unemployment which is now a canka in this country the youth we are calling for it
I hope this time NPP parliamentarians did not sleep and Read the documents very well before voting for it approval.