Ghanaian agribusiness company, Park Agrotech, has received Cabinet’s approval as the preferred strategic investor for the Komenda Sugar Factory, Trade Minister Alan Kyerematen has disclosed.
The Minister told Parliament, in Accra, that Agrotech was expected to work with STM Projects Limited, an Indian company with extensive experience in the management and operation of Sugar Mills and plantations both in India and other parts of the world.
Accordingly, following the approval by Cabinet as required by conventional practice, the Transaction Advisors entered into final negotiations with the successful bidder with the view to entering into concession agreement for the operations of the Komenda Sugar Factory.
Mr Kyerematen, who was addressing the current state of the Komenda Sugar Factory, said over the first three years of the agreement, Agrotech would invest US$28 million in capital expenditure and working capital, and would pay an annual concession fee of US$3.3 million for a period of 15 years.
The Agreement would become effective upon completion of Conditions Precedent, which include the approval of the Agreement by Parliament, adding that the required documentation would be brought to the House in due course.
Mr Kyerematen explained that it became necessary to delay action on the project’s implementation during the final negotiations until the finalization of the National Sugar Policy, which was intended to provide the strategic policy framework for the execution of the project.
He revealed that after a series of extensive stakeholders’ consultations, the National Sugar Policy was finally approved by Cabinet in late 2019.
The approval of that policy paved the way for the Concessionaire to be formally introduced to the traditional leaders of the Komenda Traditional area in November, 2019.
Accordingly, a formal agreement between Park Agrotech Limited and Komenda Sugar Development Company Limited has now been executed.