Ghana signs $10 bln MOU with China for bauxite project -Senior Minister

BII Railway Transportation Technology Holdings Co

28/06/2017 16:36

By Karin Strohecker 
    LONDON, June 28 (Reuters) - Ghana has signed a $10 billion 
memorandum of understanding (MOU) with China to develop its 
bauxite industry, the country's Senior Minister Yaw Osafo-Maafo 
said on Wednesday. 
    Growth in the West African country slowed sharply in 2014 
due to a fiscal crisis and tumbling commodity prices following 
years of economic expansion at around 8 percent on the back of 
gold, cocoa and oil exports. 
    Taking office in January, President Nana Akufo-Addo has 
outlined a programme of job creation through the private sector 
and rural development. 
    "To develop the bauxite project with its railway and 
converting bauxite into aluminium we will need about $10 billion 
... we signed an MOU," Osafo-Maafo told reporters at a 
conference in London after arriving from China.  
    "The money will come from the Chinese Development Bank, the 
implementation of the project will come from other agencies, 
infrastructure agencies in China, like China Railway," he said. 
    The funds from Beijing would contribute towards building 
1,400 km of a planned 4,000 km railway network, which would 
connect bauxite mines and production sites as well as establish 
a rail link into neighbouring Burkina Faso.  
    Details such as interest rates and terms had yet to be 
decided, he said, speaking on the sidelines of an investor 
conference organised by Developing Market Associates.  
    During his China visit, a second MOU had been signed between 
China and the Association of Ghana Industries which could lead 
to some $2 billion being invested in agricultural projects and 
industries, Osafo-Maafo said.  
    This was part of a government pledge to "build a dam in 
every village and a factory in every district", he said. 
    Asked about the government's plan to issue a 10 billion cedi 
($2.25 billion) bond, Osafo-Maafo said he expected the debt to 
be issued towards the end of the year, and with maturities 
ranging from 5-15 years. 
    Earlier in June, Ghana had named Standard Chartered Bank 
 STAN.L  and local lender Fidelity as lead managers for the 
issue expected to clear debts owed by public sector energy 
utilities.  urn:newsml:reuters.com:*:nL8N1JC585 
     
($1 = 4.4350 Ghanian cedi) 
 
 (Reporting by Karin Strohecker, editing by David Evans) 
 ((karin.strohecker@thomsonreuters.com; +442075427262; Reuters 
Messaging: karin.strohecker.reuters.com@reuters.net)) 
 
Keywords: GHANA CHINA/MOU