China approves funding for first lot of Phase One of Sinohydro Projects in Ghana

According to a recent report, China has approved the funding of the first lot of Phase One of the Sinohydro projects in Ghana, as per the agreement signed between China and Ghana in 2018. According to the agreement, China will have access to sites to mine bauxite in Ghana in exchange of development assistance from Ghana.

According to Ghana’s Vice-President, Dr Mahamudu Bawumia, the projects under the agreement had been grouped in lots, and their review and approval were ongoing. “Major progress had been made, with the governments of China and Ghana determined to ensure the success of the ‘bauxite for development’ barter deal, which would see the leveraging of a fraction of Ghana’s bauxite to undertake a massive overhaul of her infrastructural, industrial and agricultural base,” he said.

He further said, “I want to thank you and the government of China on our Sinohydro facility. I’m happy that Sinosure (China Export & Credit Insurance Corporation) has approved the first lot of the Phase One. We are happy with the progress.”

The Chinese government hopes the rest of the first phase to be completed by March 2020.

Each of Ghana’s 16 regions are expected to be benefited from the US$2 billion Sinohydro (bauxite-for-infrastructure barter) arrangement, with various construction projects starting from hospitals to court and residential buildings to the extension of electricity to rural areas.