Spending 1.5m dollars of Sino-hydro deal on roads will boost economy – Ofori Atta

Finance Minister, Ken Ofori Atta has underscored the need for construction of roads to encourage trade in and out of the country to boost the economy.

He indicated that the government is making strides in the infrastructural sector in order not overrun the budget in an election year.

It follows the announcement by Vice President, Dr. Mahamudu Bawumia, that government will spend 1.5 billion dollars of the 2 billion Sino hydro bauxite deal on roads.

Speaking on the Citi Breakfast Show, however, Ken Ofori Atta said, “how do you open up the country to ensure that goods and services come to the appropriate market places? That is why we are doing good works on the roads.  At the same time, we are having our eye on the 2020 election to ensure that we don’t break the bank in 2020 as this policy is still sanguine.”

“We have to start doing it now because, I think if you don’t start gets your infrastructure in place with the appropriate financing a year or two before election period it leads to a disaster period”, he added.

The government will break ground for the construction of Tamale Interchange, which forms part of the country’s road infrastructure development under the $2 billion Sinohydro Bauxite Barter Transaction between the Government of Ghana and Sinohydro Group Limited of China next week.

It has also said $1.5 billion of the amount would be expended on road construction across the 16 regions to enhance socio-economic activities and economic growth.

The Sinohydro deal

The deal is a Master Project Support Agreement between the government of Ghana and Sino Hydro Corporation Limited of China.

Projects such as new interchanges in Tamale in the Northern Region, and Takoradi in the Western Region, as well as other road projects listed in the Mid-Year Budget Review, are to constructed under the project.

The agreement among others will fund the infrastructure projects in Ghana, including roads, bridges, interchanges, hospitals, housing, railway development as well as rural electrification.

Critics have said the agreement must be reviewed because it is not in the interest of Ghana and would instead add up to Ghana’s debt stock, a claim government had rejected.

The Minority in Parliament also says the $2 billion bauxite deal is a loan despite attempts by the government to make Ghanaians believe it is a barter arrangement that would not bloat the country’s debt stock.

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Source: citinewsroom