China Exim Bank and the Government of Ghana signed a $10.4 billion concessionary loan for the development of a railway system from Kumasi to Paga, Ghana’s Eastern Corridor roads network and other sectors of the economy. Four billion dollars will go into the railways system, six billion dollars for ancillary energy infrastructure, education and sanitation among 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 for Finance and Economic Planning, Mr. Joe Gidisu, Minister for Roads and Highways and Mr. Dan Markin, Chairman of 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 Atta Mills to China.
The loan, which will be payable in 20 years, will 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 billion dollars from the China Development Bank for the development of Ghana’s energy sector and its ancillaries.
The total facility so far clinched amounts close to 14 billion dollars, including a $260 million package for expansion works project and 150 million for Ghana’s e-governance project and a grant of 100 million yuans.
The execution of the road and railways project is expected to open up the eastern, middle and the northern parts of Ghana for accelerated development.
The initiative also seeks to promote the exploitation of mineral deposits and the execution of the Savanna Accelerated Development Project meant to open up the Upper West, Upper East and Northern Regions towards poverty reduction.