Gov’t forms risk management team for $2bn bauxite deal

Gov’t forms risk management team for $2bn bauxite deal Kojo Oppong Nkrumah

Government has instituted a Risk Management Team to resolve the challenges that may characterize the implementation of the $2 billion Sinohydro bauxite deal.

The signing of the deal by government has been heavily criticized especially by the Minority in Parliament, who argue that it amounts to a cheap sale of the country’s resources.

Speaking at the second edition of the Citi Business Forum, on the theme: After China, what next, Information Minister-designate, Kojo 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.

Background

The government has sealed an agreement with the Chinese government to sell Ghana’s bauxite to China’s Sinohydro Group Limited and in return receive $2 billion to undertake infrastructural projects in the country [Ghana].

However, some economists and the Minority in Parliament are opposed to the deal calling on the government to classify it as a loan.


The Minority subsequently petitioned the International Monetary Fund (IMF) over the issue seeking clarification as to whether the facility is a loan or not.

But government insists the deal the deal is a barter and not a loan and also has enormous benefits for the country since a number of projects will be constructed with the $2 billion cash.

 

By: Godwin Akweiteh Allotey/citinewsroom.com/Ghana

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