The Government of Ghana (GoG) on 16th May 2018, signed a Master Project Support Agreement with Sinohydro for the “Construction of Priority Infrastructure Projects” for $2.00 billion in exchange for the proceeds of refined bauxite. The MPSA was designed to be implemented in phases to enable GOG to develop its Integrated Aluminium Project over time.
According to documents sighted by MyAbclive.com, (10) EPC Contracts and 10 Deferred Payment Agreements were signed on 1st September 2018 for the construction and rehabilitation of selected roads and interchanges under the Phase 1 at a total amount of US$ 646,637,879.74.
Under the DPA arrangement, GOG Is not required to repay any part of the Finance Facility Amount to Sinohydro until expiry of 3.5 years from the date of the DPA where the proceeds from bauxite or refined bauxite is expected to be used to repay.
All projects commenced on different dates based on the approval of Sinosure and fulfillment of all the conditions precedent.
The grace period and repayment is calculated from commencement date of construction per project and not the date the agreements were signed.
ABC NEWS and myabclive.com can authoritatively state that currently, construction on six out of the 10 lots have started and are at various stages of completion. Three lots (1, 2 and 5) are expected to start by the end of 2021. Lot 9 has been replaced with a different project, and, therefore, needs to go through the entire process again.
Partners have been selected for the commencement of the Integrated Aluminum Project
Repayment of the Sinohydro MPSA would be proceeds from refined bauxite, and, therefore, the need for the projects to be executed while considering the progress of the Integrated Aluminum Project. It would be recalled that a fortnight ago, GIADEC successfully selected Rocksure International as its strategic partner to develop one of four projects being executed under the IAI value chain.
President Akufo-Addo who witnessed the signing of the agreements between the two parties at a brief event held in Accra said that the IAI remains an integral part of his government’s industrialization agenda.
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