US$2 billion bauxite agreement with China can hurt us – IFS Director

A Bauxite mining site

The Director of Research at IFS, John Kwakye is calling for more disclosure regarding Ghana’s US$2 billion bauxite agreement it had with China.

He was of the view that there were still unanswered questions about Ghana’s obligation and consequences of possible breaches.

“There’s the case of other African countries unable to honour their obligation under a deal with the Chinese which led to the infrastructure built being ceded to the Chinese.”

Zambian was in the news recently when its international airport was to be taken over by the Chinese due to debt repayment default.

Parliament in July 2018 approved a Master Project Support Agreement facility for the construction of priority projects in Ghana by Chinese firm, SynoHydro Corporation.

The passed agreement means Ghana will leverage its bauxite reserve at Atewa forest for the amount from China.

Ken Ofori-Atta, while presenting the mid-year budget review in Parliament, said Sinohydro Group Limited, is expected to “provide US$2 billion of infrastructure including roads, bridges, interchanges, hospitals, housing, rural electrification, in exchange for Ghana’s refined bauxite.”

It is these developments the IFS chief fears will not auger well for the country.

Michael Eli Dokosi/goldstreetbusiness.com