China approves funding for Sinohydro projects in Ghana

China has approved the funding of the first lot of Phase One of the Sinohydro projects in Ghana. China and Ghana signed the agreement in which China will have access to sites to mine bauxite as compensation for the development assistance.

According to Ghana’s Vice-President, Dr Mahamudu Bawumia, the projects under the agreement had been grouped in lots, and their review and approval were ongoing. “Major progress had been made, with the governments of China and Ghana determined to ensure the success of the ‘bauxite for development’ barter deal, which would see the leveraging of a fraction of Ghana’s bauxite to undertake a massive overhaul of her infrastructural, industrial and agricultural base,” he said.

“I want to thank you and the government of China on our Sinohydro facility. I’m happy that Sinosure (China Export & Credit Insurance Corporation) has approved the first lot of the Phase One. We are happy with the progress,” affirmed the vice president. He further added that, there was a time when people thought maybe it would not materialise but it has materialised and the government hopes that the rest of the first phase will come through by March of 2020.

Also Read:Phase 1 of US $2bn Sinohydro deal set to commence

The Sinohydro arrangement

Each of Ghana’s 16 regions will benefit from the Sinohydro arrangement, with hospital projects, the extension of electricity to rural communities, and construction of court and residential buildings for the Judicial Service, landfill sites and industrial parks expected to take place.

The US $2bn Master Project Support was agreed between Ghana and China in 2018 to address major infrastructure challenges in the country. Under the deal, Sinohydro Group Limited of China will provide the infrastructure of the government’s choice in exchange for Ghana’s refined bauxite.

Working with China for growth

Dr Bawumia further reaffirmed the desire of the government and people of Ghana to work hand in hand with China to ensure mutual benefit and growth, emphasising that Ghana was determined to learn from China.