The “Corona” outbreak: US $ 2 billion Sinohydro Bauxite deal in Ghana set for more delay

Ghana Center for Democratic Development (CDD-Ghana) declared that: “outbreak of COVID- 19 is currently hitting Ghana’s economy as there are indications that aspects of the Sinohydro deal will be delayed.”

CDD-Ghana has raised concerns regarding the need for the government to initiate socio-economic reforms to mitigate the effects of Coronavirus on the country’s economy.

The statement also stated: “as a net consumer of goods and services, any disruptions in the global economy ripples down to Ghana. Currently, there are indications that the aspects of the Sinohydro Bauxite agreement will be delayed due to disruptions in the Chinese economy. Should this happen, this could have a significant impact on the government’s development agenda.”

The Sinohydro Bauxite Project is expected to bring some $2 billion, with about $1.5 billion being directed towards major road projects in the country. Four out of 10 road projects have already commenced.

The $2 billion bauxite-for-infrastructure deal was signed between Govt. of Ghana and the Chinese state-owned, Sinohydro Company. This project was reflected as very vital in the government’s whole infrastructure projects for this year.

The government’s 2020 budget projected that some GH¢9.2 billion would be needed to finance its capital projects and due to some reason there is a delay in raising the funds, it could affect the government’s financial prospects badly for this current year.