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Gov't forms risk management team for China-Ghana Bauxite Deal

Written by  Sep 14, 2018
Information Minister-designate, Kojo Oppong Nkrumah has announced that government has instituted a Risk Management Team to resolve the challenges that may characterize the implementation of the $2 billion Sinohydro bauxite deal. Speaking at an event organized by Accra based Citi Fm, Mr Oppong Nkrumah said, the government will ensure that the country makes the best out of the deal. “We have put in place what we call the risk management team made up of people who are familiar with the Sino experience. Sometimes some argue that they [China] keep changing the goal post, you can agree on something or on a broad framework with them, next two weeks, before you sign off then they change it. So how do we get people who are very familiar with that construct to aid us through this process. We have a risk management team that is paying attention to it,” he added. Vice President Dr. Mahamudu Bawumia has said the arrangement seeks to leverage a fraction of Ghana’s bauxite resources to address the infrastructure challenges, and will provide a wide variety of projects including hospitals, bridges, interchanges, roads, affordable housing, rural electrification, and many others in line with government’s development agenda. Speaking at the 2018 Ghana Economic Forum in Accra on Wednesday 5th September, 2018, Vice President Bawumia stressed that Sinohydro’s mandate is to construct infrastructure, not engage in mining, and dismissed suggestions that the Nana Akufo-Addo government had sold Ghana’s bauxite to China for $2 billion. Rather, government has set up a holding company which will soon enter into a joint venture agreement with potential mining companies, refineries and off-takers from across the world who have the capacity, to establish the bauxite mines and refinery, and the proceeds from Ghana’s share of the refined bauxite will be used to pay for the infrastructure. “What this arrangement does basically, is to say that we agree with Sinohydro that they provide us with our choice of infrastructure worth $2 billion. The Sinohydro Corporation which is going to provide the infrastructure is not the company that is going to mine the bauxite and they are not taking our raw bauxite. In other words, Sinohydro is not a mining company,” Vice President Bawumia emphasised. “Rather, government in our plans has set up a holding company backed by an Act of Parliament called the Ghana Integrated Aluminum Development Company that will soon enter into a joint venture agreement with potential mining companies, aluminum refiners and off-takers to establish the bauxite mines and refinery. “After mining and refining, Government of Ghana will then use her share of the refined bauxite to pay-off whatever cost of the infrastructure provided by the Sinohydro Corporation. This will only happen after a period of three years and on condition that Sinohydro has completed the infrastructure projects that the people of Ghana has asked them to do.”
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