Vice-President Dr Mahamudu Bawumia
Vice-President Dr Mahamudu Bawumia has revealed that China’s Sinohydro Group Limited will be paid an agreed $2billion only after completion of the specified infrastructure it has agreed to provide for the Government of Ghana.
Per the agreement, Ghana will exchange refined bauxite with US$2 billion worth of infrastructure from the Chinese firm.
Even though the Minority in Parliament has questioned the move, indicating that it will increase the debt stock of the country, Dr Bawumia insists that the agreement is a barter trade and the best under the current circumstances.
Delivering a speech at the ongoing Ghana Economic Forum on Wednesday, 5 September 2018, Dr Bawumia explained that the payment “will only happen after a period of three years and on condition that Sinohydro has completed the infrastructure project that the people of Ghana have asked them to do”.
He said under the arrangement, Sinohydro will not take raw bauxite and will not be engaged in mining of the mineral, as the company is not into mining.
Rather, he explained that the Ghana Integrated Aluminium and Bauxite Development Authority will enter into a joint venture arrangement with potential mining companies, aluminum refiners and off-takers to establish bauxite mines and refinery.
“So, you are going to have a situation where Sinohydro will provide the infrastructure and Ghana will choose its own partner to set up the integrated aluminium industry in Ghana. After mining and refining, the Government of Ghana will then use her share of the refined bauxite to pay off whatever cost of the infrastructure provided by Sinohydro Corporation,” he reiterated.