GNPC gains access to funding from China

A Memorandum of Understanding (MoU) which provides the Ghana National Petroleum Corporation (GNPC) and the Ministry of Finance and Economic Planning an opportunity to access funding from the China Development Bank was signed on Tuesday. The agreement would help Ghana to obtain the necessary funding in the effective utilization of oil and gas by developing critical oil facilities and infrastructure, building of deep water and off-shore facilities, agricultural production, tourism development and general infrastructural support. It will also give the GNPC and the Ministry of Finance an opportunity for direct negotiations with the bank. Officials from both parties could not tell how much would be involved to undertake the programme. Nana Boakye Asafu-Adjaye, Managing Director of GNPC, explained that the Cooperation could not quote any amount for the programme because it was still considering projects that might need funding from the bank. He said the MoU gave especially the GNPC an opportunity to develop a world-class oil and gas industry as well as ensure that Ghanaians derived maximum benefit from their oil and gas. "With the signing of this agreement we can mobilize funding to achieve our mandate," he said. Mr Zhao Jianping, Governor of China Development Bank, who signed the agreement on behalf of the Chinese Government, said there was an African Development Fund that could assist Ghana to meet her social and economic needs. He said "The China Development Bank is the largest financial institution in the world," and pledged China's commitment to the agreement. Dr Kwabena Duffuor, Minister of Finance and Economic Planning, who signed the agreement on behalf of Ghana, hoped the MoU would support infrastructural development in the country.