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06 DECEMBER 2018 AL CIRCLE

Parliament approves US$2 billion Ghana-China barter deal

EDITED BY : HEENA IQBAL 1MINS READ

Parliament, on Wednesday, 5 December 2018 approved the US$2 billion bauxite barter deal between the government of Ghana and China’s Sinohydro Corporation Limited, according to news reported by Ghana Web.

Under the deal Sinohydro would fund the infrastructure projects in Ghana, including roads, bridges, interchanges, hospitals, housing, rural electrification in exchange for refined bauxite. This means Ghana would leverage its bauxite reserve at Atewa forest for the amount from China.

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Kwame Agbodza, the Ranking Member of the Roads and Transport Committee, said a 2-layer road in 2016 cost the Ghanaian taxpayer just GHS1 million but the same length of road has been pegged at GHS 5 million under the contract.

But Majority Leader Osei Kyei-Mensah-Bonsu lauded the deal saying the agreement seeks to bring development to the Ghanaian people. 

Members of the Ghana Mine Workers Union (GMWU) had supported the Akufo-Addo Administration’s decision to sign a $2 billion bauxite barter agreement. But the government was facing criticism from analysts and oppositions on the decision to agree on a loan for infrastructure spending in exchange of bauxite.

Tagged with:

Bauxite project Ghana China

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EDITED BY : HEENA IQBAL 1MINS READ

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