Chinese Bank Signs Pact With GNPC, Ministry

The China Development Bank has entered into a strategic co-operation framework agreement with the Ministry of Finance and Economic Planning and the Ghana National Petroleum Corporation (GNPC).

Under the agreement, the Ministry of Finance and the GNPC could have direct negotiations with the bank for the financing of projects in the oil and gas, educational, health, road infrastructure and agricultural sectors.

The bank will have to determine the viability of projects and the ability of the ministry and the GNPC to pay back the loans within a stipulated period before releasing the funds.

To signal the take-off of the agreement, the Minister of Finance, Dr Kwabena Duffuor, signed the co-operation framework agreement on behalf of the government, with the Managing Director of the GNPC, Nana Boakye Asafu-Adjaye, initialling it for the GNPC, while the Deputy Governor of the China Development Bank, Mr Zhao Jianping, signed it on behalf of the bank at a ceremony in Accra last Tuesday.

Dr Duffuor said the signing of the agreement would enable the ministry to secure funding from the bank for the improvement of the road infrastructure in the country.

He mentioned the remote and farming areas of the country as those that would benefit from the road infrastructure, explaining that improving the road infrastructure would enhance accessibility to remote areas to promote business and the growth of agriculture.

He said Ghana was fortunate to have entered into the agreement with the bank, as it was the biggest financial institution in the world.

He expressed the hope that the signing of the agreement would deepen the economic and political relations between Ghana and China.

Nana Asafu-Adjaye said the agreement would enable the GNPC to mobilise the necessary finances to develop infrastructure, ensure the monetisation of the gas from the Jubilee Field and support the processing plant of the corporation.

He said the expected finances from the bank would contribute to the attainment of a first-class oil and gas industry in the country, which, he said, was in line with the GNPC’s mandate.

Mr Jianping said the bank was encouraged by the prevailing peace in the country and the fact that Ghana had “a good investment climate”.

He said the potential for the framework agreement was great, as it called for a systematic approach which would make the demand for the social services of both countries better.

Mr Jianping said Ghana and China had enjoyed good relations, adding that the signing of the agreement marked a new page in the economic and political ties between the two countries.

The Economic Counsellor of China to Ghana, Mr Hu Yujie, said the two countries had opportunities in the agricultural and oil sectors, which must be tapped for their mutual benefit.