Ghana’s first tranche of $3b China loan ready – Veep

Vice President John Dramani Mahama on Wednesday said the first tranche of the $3 billion Chinese loan from the China Development Bank (CDB) was ready for immediate draw-down by the Government.

“With regard to the $1 billion facility; draw-down can start immediately, actually the day after the signing, there was a meeting between our Deputy Minister of Finance and the CDB to agree on the schedules for the draw-down, there’s nothing obstructing it” he stated.

Vice President Mahama announced this on arrival at the KIA from China where he led a Ghanaian delegation to sign the initial subsidiary agreement for the release of the first part of the facility amounting to one billion dollars.

The larger part of the amount, he said would go to the Ghana Gas Company for the establishment of the Gas Processing Plant in the Western Region.

Vice President Mahama described the project as a critical component in moving Ghana’s transformation to the next level, and would enable the contractor, Sinopec to carry the project including laying pipes that would bring the gas on-shore.

Vice President Mahama said the other subsidiary agreements would focus on areas with the capacity of generating income to service the loan including the Takoradi Harbour Extension Project, Railway Rehabilitation Project, Eastern Corridor Multi-Modal Project and Accra Plains Irrigation Project expected to increase food production.

Source: GNA