Government justifies $2bn infrastructure agreement
| Updated Aug 01, 2018 at 9:20am
Kojo Oppong Nkrumah
Government has defended the two (2) billion dollar infrastructure agreement it entered into with Sinohydro Corporation Limited for the construction of priority projects.
The government insisted the arrangement is a barter facility and not a loan as the public were made to believe.
The Minority in Parliament opposed the two (2) billion dollar infrastructure arrangement saying it is a loan and until government declared it as such, they would not support it.
Deputy Minister for Information, Mr Oppong Nkrumah made the justification at a news conference in Accra where he threw more light on the agreement.
He noted that the objective of the facility is to improve infrastructure projects such as hospitals, bridges, interchanges, roads, affordable housing and fishing landing sites in line with government's development agenda.
The Deputy Minister stated that the phase one of the project, which is about $500 million would be used to construct critical infrastructure especially roads across the country.
Whiles phase two, which is $1.5 billion goes beyond road projects and comprises hospitals, bridges, affordable housing, rural electrification and fish landing sites which cut across Ghana.
He explained that one important thing about the current deal is that 30 percent of the work had to be reserved for local sub-contractors. Mr Oppong Nkrumah noted that the current barter arrangement would allow government more fiscal space even as it improves on their domestic revenue mobilization.
Deputy Minister of Roads and Highways Anthony Abeifa Karbo said that the barter arrangement is a new way of financing projects.
He said all the roads captured under the sino-hydro facility have been carefully selected and have clear national representation, adding that, every part of Ghana had been captured under the facility.