Tuesday, 21 September 2010

Ghana and China sign $3 billion loan agreement

Ghana's President John Evans Atta Mills and China's President Hu Jintao signed a loan agreement for $3 billion, intended to develop Ghana's burgeoning energy industry. The agreement stipulates that the loan shall be used to target specific areas of the sector including its infrastructure development, job creation and other derivatives of the oil and gas industry.

The agreement was officially announced following bilateral talks between President Mills and President Jintao held at the Great Hall of the People in Beijing. The loan distributed through China Development Bank, constitutes the first phase of China's financial assistance to Ghana.

Additionally, China has also agreed to give Ghana preferential buyers' credit worth $260 million for the development of the Kpong Water Works project and another loan of $150 million for Ghana's e-governance project. Shortly after the meeting a spokesperson for President Mills said that the Ghanaian president was fully committed to overseeing all projects in their entirety.

"On the basis of equality, mutual benefits consultation, the Government of Ghana and China Development Bank shall set up a long-term strategic co-operation through a long-term project financing for infrastructural development and have agreed to bring export competitiveness and co-operation in the oil and gas sectors, their derivatives and the agricultural sectors," said Head of Communications at the Office of President Mills Koku Anyidoho.

Source: Ghana News Agency

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