Sinohydro deal to be used for infrastructure development

BY: Jennifer Ansah
Sinohydro deal to be used for infrastructure development
Sinohydro deal to be used for infrastructure development

THE government has allocated US$500 million out of the US$2 billion Sinohydro infrastructure deal for the reconstruction of key roads connecting all regions in the country.

The Sinohydro infrastructure deal is a Master Project Support Agreement (MPSA) between the government and Sinohydro Corporation Limited of China for the construction of priority infrastructure projects within a period of three years.

The construction of intra-urban and national roads forms the first phase of the MPSA which will commence before the end of this year, while the second phase will cost US$1.5 billion and will include the building of hospitals, schools, bridges and roads in rural communities.

The project forms part of the government’s agenda to bridge the country’s infrastructural gap.

It has been described as a barter agreement to open up a new financing model for Ghana’s future infrastructure projects.

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Road construction

New roads that are expected to be constructed under the first phase of the project include Ahnwia Nkwanta-Obuasi, Nyinahene-Kyekyewere, Nyinahene Awisesu, Manhyia Sub-Metro, Suame Sub-Metro, Tafo Pankrono Sub-Metro, Kwadaso Sub-Metro, Mampong inner city roads, Atebubu-Kwame Danso-Kojokrom, Sunyani Inner Ring Road, New Abirem-Ofoase-Akim Oda, Kessekrom-Adiembra, Awakrom-Amisano (Ekumfi), PTC Interchange, Takoradi, Sunyani inner city roads, Berekum inner city roads and Elubo -Enchi-Kramokrom-Akotombra roads.

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The rest are the Dwenase-Nsuonua-Anglo-Kwabenakwa road, Prestea inner city roads, Twifo Praso-Esikuma-Dunkwa on Offin, Tamale Interchange, Wulugu-Kpasenpke-Wa roads, Akotokyir road, Cape Coast Polytechnic road, Apawusika road and links, Jasikan-Dodo-Peppesu-Nkwanta roads and Bunkpurugu-Nalerigu road.

Other major roads to be tackled in Accra will include the Taifa-Burkina- Nkatia Burger-Dome Kwabenya Mosque, Christo Asafo area road -Taifa, Fan Milk area road-Anyaa, Adugyamfi road in Anyaa, Omanjo to Olebu road, Abaase road to Ablekuma, Adentan-Dodowa road (dualisation) and Ofanko Hospital Link road.


The Deputy Minister of Roads and Highways, Mr Anthony Karbo, disclosed this at a press conference at Parliament House in Accra.

He added that “the Sinohydro project will cover construction of roads, schools, bridges and hospitals. Needy communities in the Northern, Ashanti, Greater Accra, Upper West and indeed the rest of the country will not be left out. In addition, the Eastern Corridor roads, Yapei and Bupei bridges and the Akontombra road, will all be captured.”

According to him, “we are also taking into account roads in the bauxite mining areas which are to be put in good shape before the Chinese investors begin work.”

A Deputy Minister of Information, Mr Kojo Oppong Nkrumah, expressed the hope that the Minority would come on board and support the project.

He, however, explained that the project would have to be approved by Cabinet and Parliament before construction works begin.


The MPSA is a barter facility under which Sinohydro will execute various contractual works for Ghana with the state repaying the facility with refined bauxite (alumina/aluminium).

The terms and conditions of the agreement include an advance payment of 15 per cent of the engineering, procurement and construction (EPC) contract that is to be pre-financed by Sinohydro and a repayment period of 12 years with a grace period of three years.

Bauxite mined by the Chinese will be refined by the Ghana Integrated Bauxite and Aluminium Development Authority (GIBADA).