China has granted Ghana two concessional financial facilities totalling 100 million Chinese yuan, approximately $14.65 million.

They are a 60 million Chinese yuan grant and a 40 million Chinese yuan interest-free loan which are general financial supports that the governments of Ghana and China will decide on the areas to apply them.

This brings to $650 million total Chinese financial support and loans to Ghana since 2006, a portfolio which is set to increase substantially if other loans and support requests presented in the spirit of the Sino-Africa Summit in 2006 are approved.

Finance Minister, Dr Kwabena Duffuor, signed on behalf of Ghana, while the Chinese Ambassador to Ghana, Mr Yu Wenzhe, signed on behalf of China.

According to the agreement, the two governments would later agree on areas where the assistance would be channelled.

The new financing is an improvement over the previous portfolio, which Mr Wenzhe explained was because the government’s people-centred agenda was akin to what China espoused and practised.

In May this year, the Chinese Government signed a 20 million yuan grant and a 10 million interest-free loan agreements with Ghana, while last year saw Ghana receiving a 20 million yuan grant and a 30 million yuan interest-free loan from China.

Although the areas where the facilities are to be spent are yet to be determined, in the past such open-ended facilities had been used on infrastructural development such as the Ministry of Defence offices, the National Theatre, the first phase of the National Communications Backbone Infrastructure Project, the University of Ghana ICT-Enabled Distance Learning Project, as well as some road projects.

This year, the Chinese Government has already made a commitment to rebuild the burnt office of the Ministry of Foreign Affairs and Regional Integration.

Dr Duffuor expressed satisfaction with the various projects embarked on by the Chinese Government through the interest-free loans and preferential buyer’s credit of the Chinese Export-Import Bank and pledged the government’s commitment to continue ongoing projects and stand by previous agreements.

“I wish to assure the Government of China of this government’s commitment to continue the implementation of all Chinese Government-supported projects initiated by the previous government that fall within the priorities of our administration,” Dr Duffuor pledged.

He, however, appealed to the Chinese Government to consider and approve Ghana’s applications for concessional loans for the implementation of projects in critical areas of the economy, such as health, roads, railways, water and agriculture.

For his part, Mr Wenzhe said relations between Ghana and China dated back to the 1950s and that the country’s new people-centred agenda was also the refrain of China.

He pledged his country’s commitment to deliver quality in all the projects it was executing and on schedule so that its collaboration with Ghana would benefit the two countries.

“I am sure this friendship will bring tangible results and benefits to the peoples of our two countries,” Mr Wenzhe stated.

Source: Daily Guide

Tags: china, ghana, grants, loans