Gov't secures 1bn of 3bn dollar Chinese loan

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Category: Development

Created on Monday, 16 April 2012 00:00

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Gov't secures 1bn of 3bn dollar Chinese loan

Government has secured 1 billion of the 3 billion dollar Chinese loan following the signing of the subsidiary agreement with the Chinese Development Bank.

The Vice President John Mahama who signed the agreement in China on behalf of the government, Monday, was optimistic the signing and subsequent disbursement will boost the economy.

“I think that for Ghana this is significant stage in her development because it allows us to move Ghana’s transformation to the next level. The World Bank determined that Ghana had a deficit in terms of financing infrastructure of some 1 billion dollars a year. So turning to the emerging economies BRICS especially like China, Brazil, India and other countries is providing another source of financing in addition to our traditional sources from the World Bank and other bilateral relations,” he said.

The 1 billion dollar secured so far will be used to execute two separate projects.

A portion of the loan will go towards provide funding of gas infrastructure project for processing gas being realized out of the Jubilee Fields.

The Chief Executive of the Ghana National Gas Company, George Sipa Yankey said most of the work has been done, hoping the first batch of the offshore pipes being transported from China will be brought to Ghana in May.

“Also the offshore pipes are being fabricated and hopefully sometime in August they will be in Ghana.

He said the all the equipments for the gas processing plant must arrive in Ghana in September so that the entire project will on course by November.

From: Myjoyonline.com/Business