China Exim Bank and Government of Ghana signed a $10.4 billion concessionary loan for the development of a railway system from Kumasito Paga, Ghana’s Eastern Corridor roads network and other sectors of theeconomy.
Four billion dollars would go into the railways system, six billion dollars for ancillary energy infrastructure, education and sanitationamong others, and 400 million for the Eastern Corridor roads.
The President of China Exim Bank, Mr Li Rougu, signed for the Bank while Mr Fiifi Kwetey, Deputy Minister of Finance and Economic Planning,Mr Joe Gidisu, Minister for Transportation and Mr Dan Markin, Chairmanof the Ghana Railways Development Board, signed for Ghana..
The signing took place in Beijing, China, on the sidelines of the third of the five-day state visit of Ghana’s President John Evans AttaMills to China..
The loan, which would be payable in 20 years, would start rolling next year after approval by both Cabinet and Parliament of Ghana.
The facility is the second to be announced as a result of President Mills’ visit to China after an earlier one of more than three billiondollars from the China Development Bank for the development of Ghana’senergy sector and its ancillliaries.
The total facility so far clinched amounts close to 14 billion dollars, including a-$260 million package for expansion works projectand 150 million for Ghana’s e-governance project and a grant of 100million yuans.
The execution of the road and railways project is expected to open up the eastern, middle and the northern parts of Ghana for accelerateddevelopment.
The imitative also seeks to promote the exploitation of mineral deposits and the execution of the Savanna Accelerated DevelopmentProject meant to open up the Upper West, Upper East and Northern Regionstowards poverty reduction..
Source: GNA
