Ghana-China road deal settled

The agreement between Ghana and China over a road construction project has been settled. The deal will see Ghana effectively trading bauxite from a mining operation with a Chinese firm, which will build road links in the West African nation. The deal is called the Sinohydro Bauxite Barter Arrangement and has been set up with Ghana’s Government. Ghana will supply the firm with around 5% of its refined bauxite production under the agreement. Construction work is commencing on the first stage of the project,
January 28, 2019 Read time: 2 mins

The agreement between Ghana and China over a road construction project has been settled. The deal will see Ghana effectively trading bauxite from a mining operation with a Chinese firm, which will build road links in the West African nation. The deal is called the Sinohydro Bauxite Barter Arrangement and has been set up with Ghana’s Government. Ghana will supply the firm with around 5% of its refined bauxite production under the agreement.

Construction work is commencing on the first stage of the project, with the work being carried out by Chinese contractor 5544 Sinohydro Corporation. This package of works is worth around US$646 million and involves building 442km of roads. The links comprising the first stage of the agreement include 100km of roads in Kumasi and 84km of roads in the capital Accra.

In all the deal will be worth around $2 billion. However there has been some criticism of the arrangement as it includes the development of mining operations in areas of environmental interest.

Finance & Funding

For more information on companies in this article

Related Content

  • Ghana strikes road funding deal with China
    December 13, 2018
    A funding arrangement has been agreed between Ghana and China to pay for road construction works. The package is for a US$646.6 million deferred payment deal. It has been set up with Sinohydro to cover an engineering, procurement and construction (EPC) contract. This will be for upgrade and improvement work for roads and interchanges. The package is the first in a series worth up to $2 billion that will pay for various major infrastructure projects in Ghana. One of the projects will include building a road
    Read More
  • China’s Exim Bank to fund two new Macedonia highways
    November 15, 2013
    The Chinese Exim Bank is providing much of the funding for two highway projects in Macedonia. The construction work will be carried out by a Chinese contractor, which has signed a deal with the Macedonian Government. The Chinese Sinohydro Corporation will build two stretches of highway linking Kicevo-Ohrid and Miladinovci-Stip. These will measure 56.7km and 53km long, respectively. Some 90% of the construction costs will come from the Macedonian Government, with this €580 million being provided by the loan
    Read More
  • Ghana road project moving ahead
    July 5, 2018
    Work is now underway on a new road project that will improve transport around Ghana’s capital, Accra. The Chinese contractor Zhongmei Engineering Group is carrying out the work to construct the Pokuase Interchange, as well as a number of connecting roads. The interchange will feature three levels, with the work costing US$84 million and due for completion in the second quarter of 2020. The interchange is located to the north west of Accra on the N6 highway, which leads to Ghana’s second city, Kumasi.
    Read More
  • Ghana receives highway boost
    February 15, 2012
    A World Bank loan worth US$400 million will help complete construction of four key highway links in Ghana. New Highway connections from capital Accra will be completed by the end of this year.
    Read More

Highlighted Content