Gov’t to lease Komenda Sugar Factory to Indian company for 15 years

The government is set to lease the Komenda Sugar Development Company Limited to an Indian-based firm, West Africa Agro Limited, for a renewable term of 15 to 20 years.

This initiative aims to revive the company’s operations to meet domestic demand, according to Minister of Trade and Industry K.T. Hammond.

The Komenda Sugar Development Company Limited, also known as the Komenda Sugar Factory, was established in 1964 but had halted operations for an extended period.

In 2016, the previous NDC government secured a $35 million loan from the Indian Export-Import Bank, followed by an additional $24 million investment to revamp the factory’s operations.

The factory is currently undergoing a test run in preparation for full production.

During a recent tour, Minister K.T. Hammond announced that the government is prepared to lease the factory to West Africa Agro Limited for up to 20 years, with renewal options.

He explained that the factory remains 100% Ghana-owned, but the assets and equipment will be leased to the firm, which will use them and pay back the government.

The arrangement does not involve the government holding shares in the company’s products.

“It’s a company which has a board, we just put them in charge. But it’s 100% Ghana owned and we are leasing it. We are leasing our assets to a company that is going to work on it. I mean, use our assets, our equipment, use it, and then pay us back.

“At the end of the day, we’re not going to have shares in their products, but the company is 100% going to own, thinking of giving it to them for 15 to 20 years with an option of an extension or some sort of renewal,” K.T Hammond stated.

Minister Hammond emphasised the government’s commitment to revitalising the factory and criticised the previous administration for its handling of the project.

He noted that the factory was hastily commissioned in 2016 but has not been operational since then due to numerous issues.

Source:classfmonline.com