Vice-President Dr. Mahamudu Bawumia has outlined infrastructural projects government intends to use $15billion cash expected from China.
In notes he presented at Africa-China Joint Research and Exchange program in Accra Tuesday, Bawumia mentioned 20 categories of investments the government has planned to use the money for.
Ghana wants to give "less than 5%" of its bauxite reserves in exchange for $15billion in a joint venture agreement.
Ghana has 960 million metric tonnes of Bauxite reserves worth $460 billion. The New Patriotic Party (NPP) government is keen to raise money to fulfil a long list of campaign promises.
Dr. Bawumia said the government plans to build the first-ever interchange in the Northern region while an integrated Aluminium industry envisaged by Ghana's first president will take off in earnest.
Ghana needs to spend at least $1.5 billion annually to close its infrastructure deficit. The money from China is therefore 10 years worth investment.
Details of Bawumia's notes
China Railway International Group Limited signed a Memorandum of Understanding to provide $10 billion to support the components of a massive infrastructure development programme spanning the mining, industrial and railway fields.
In addition, the Chinese government has provided Ghana the following grants:
- A grant of about RMB100 million for infrastructure development- We will use this to acquire about 500 vehicles for the police
- About RMB 50 million for the Ghana Armed Forces
- 4 patrol boats for the Ghana Navy
- Fund construction of 90 bridges across the country
- Fund construction of Interchange at ‘Point 7’ in Tamale. This would be the first ever interchange in northern Ghana.
- Build a new Accra Psychiatric Hospital
A major part of our conversation in China was the Integrated Aluminium Industry development. This involves development of the Nyinahin and Kyebi Bauxite Mines and an Aluminium Refinery.
Construction of the Eastern, and Central Rail Lines including its extension to Paga in the north of the country, the Boankra, Buipe Inland Ports and Paga inland terminal, 910 km of road network.
Four Interchanges (Sofoline, Oforikrom, PTC Takoradi, Danquah Circle). Ten industrial parks in 10 regions.
25,000 houses for the security services, 100,000 social housing units, 25 district hospitals, Western Regional Hospital, Reconstruction and Rehabilitation of 8,286 collapsing classrooms,
Upgrading 42 SHSs into model schools, Teaching and Learning Materials, 228 Buses and 198 Pickup trucks for schools Irrigation and water transmission systems in northern Ghana.
"We are undertaking all of these projects, not by borrowing but with less than 5% of our refined bauxite reserves," he observed.