Sinohydro deal: Minority cries foul over terms and conditions

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The Minority group in Ghana’s Parliament is crying foul over the terms and conditions of the Deferred Payment Agreements between the Government of Ghana and Sinohydro Corporation Limited under the Engineering Procurement Contract (EPC) agreement for the construction and rehabilitation of selected roads and interchanges in the country.

The group is of the view that the facility is too expensive and does not satisfy value for money considerations. Therefore, in consideration of the terms and conditions, it qualifies as one of the most expensive facilities contracted in the history of the country.

Parliament on Wednesday approved an amount of up to 646,637,879.74 Million Dollars for the first phase of projects under the EPC contract despite concerns raised by the Minority.

The Ranking Member on the Finance Committee, Cassiel Ato Forson, told the House in his contribution to the debate on the report that, though he is not against the agreement in principle he could not support its approval because there were problems that needed to be addressed.

He observed that the state was going to pay back an amount of 150 Million Dollars just for interest and insurance for a facility of about 420 Million Dollars. According to him, this calculates to about 35% of the amount being procured in nominal terms. He therefore deems the facility as very expensive.

Speaking in defense of the Government, the Minister In Charge of Monitoring and Evaluation, Dr. Anthony Akoto Osei, indicated that the value for money issue raised by the Minority is always done after Parliamentary approval, hence it will surely be done. He said there would be more room for renegotiation of the agreement before the commencement of the projects.

Though he conceded that the facility was relatively expensive, he observed that the construction of good road infrastructure is expensive.

The Deferred Payment Agreement is part of the implementation of the Master Project Support Agreement (MPSA) which was entered into by the Government of Ghana and Sinohydro Corporation Limited for Two Billion United States Dollars to support priority infrastructure projects.

Some of the Road Infrastructure projects in this first phase the Accra Inner City Roads; Kumasi Inner City Roads; Tamale Interchange Project; PTC Roundabout Interchange Project, Takoradi; and the Adenta-Dodowa Dual Carriageway.

The rest are Sunyani Inner City Roads; Western Region and Cape Coast Inner City Roads; Upgrading of Selected Feeder Roads in Ashanti and Western Regions; Rehabilitation of Oda-Ofoase- Abirem Road; and Hohoe-Jasikan-Dodi Pepesu Road.

Source: Clement Akoloh || Africanewsradio.com

 

 

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