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Risky’ $2bn Bauxite Deal: Gov’t Has No ‘Contingency Plan -IMANI   
 
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13-Sep-2018  
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Policy Think Tank, IMANI Africa, has warned that the government’s plan to finance its part of the $2 billion Sinohydro Chinese agreement may leave the country with abandoned projects or judgment debts.

In a seven-page critique of the agreement, IMANI said the government had no contingency plan to finance its obligations to the deal especially when the move to put up

The government has sealed an agreement with the Chinese government to sell Ghana’s bauxite to China’s Sinohydro Group Limited and in return receive $2 billion to undertake infrastructural projects in the country.

The agreement among others will fund the infrastructure projects in Ghana, including roads, bridges, interchanges, hospitals, housing, railway development as well as rural electrification.

“Without rigorous attention to every detail, Ghanaian leaders risk bungling these projects (as happened in the past and is happening in other African countries) and Ghanaian citizens would be left carrying the can,” IMANI warned.

IMANI further observed that the lack of a contingency liquidity plan “is exposing Ghana to considerable financial risk in this whole project.”

“We may wake up at some point to discover that unless we are willing to tolerate partially abandoned projects or judgment debts, we must activate the advanced payment clause in the master project support agreement (MPSA) for “early work” and thus commit to pay substantial sums to properly prosecute any part of our responsibilities under the foregoing agreement.”

The Think Tank added that “all we have by way of a financing plan is some hazy projections based on alumina we don’t have and joint ventures we haven’t signed.”

IMANI thus suggested that it would be much wiser to invest these funds in advancing the integrated bauxite project itself.

Stop the confusion; $2bn bauxite deal is a loan – Minority insists

The Minority in Parliament is insisting that the $2 billion bauxite deal is a loan despite attempts by the government to make Ghanaians believe it is a barter arrangement that will not bloat the country’s debt stock.

According to the Minority, the agreement is similar to the $3 billion petroleum-based China Development Bank (CDB) loan agreement the country went for when it wanted to build its gas infrastructure.

Find below an excerpt of the IMANI Alert

CHINA IS NOT THE PROBLEM

The entry of China as a major actor on the international development scene is a highly positive trend, despite the shrill protests of some Western propaganda outlets. IMANI’s perception of the China factor is influenced by the belief that China brings much needed “diversification” to the sources of international development finance.

OUR LEADERS MUST BE THOROUGH

As staunch critics of the “development cooperation model” pushed by the West in Africa for decades now, we have always welcomed China’s strictly transactional approach as a means to unsettle the status quo. But there is a caveat. African leaders, in Ghana and elsewhere, need to take responsibility for whether or not Africans get a good deal. There are no “multilateral development institutions” and jargons of “good governance” to hide behind now. Africa and Ghana need leaders that are savvy, detail-oriented, and strategically brilliant to avoid being out-negotiated, dominated and out-maneuvered by Chinese negotiators, who are among the best in the World. That is why IMANI continues to put the spotlight on Government actions involving Chinese dealmaking.

Without rigorous attention to every detail, Ghanaian leaders risk bungling these projects (as happened in the past and is happening in other African countries) and Ghanaian citizens would be left carrying the can.

In the discharge of our civic duty, IMANI has pledged to be thorough in reviewing every bit of every deal in the Sino-Ghanaian relationship that we consider strategic. Just as we did in the case of the CDB loan.
 
 
Source: New Crusading Guide
 
 

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COMMENTS




Name: ADJOKATCHER
THIS CUDJOE GUY WANTS TO BE RELEVANT ALWAYS , WHEN WE WERE IN POWER HE WAS ALL AGAINST US AND WE EVEN OFFERED HIM A POSITION TO APPLY HIS KNOWLEDGE BUT HE COULDNT CONTRIBUTE ANYTHING TO OUR DEVELOPMENT AGENDA SO WHEN HE REALISED HE HAS BEEN EXPOSED BADLY, HE QUICKLY BECAME AN UNAPPOINTED SPOKES PERSON FOR THE NPP. NOW IF YOU OBSERVE HIM CLOSELY, HE HAS BECOME AN UNOFFICIAL SPOKES PERSON FOR OUR GREAT PARTY THE NDC. VERY DANGEROUS GUY
 
Name: Tonga
A recycled element in our midst. No ideas always doing post mortem. WE ARE TIRED OF YOU BANKRUPT THOUGHTS
 
Name: WILLIAM NUKPEKU
THIS IMANI GUY IS A SPENT FORCE WHO ONLY TALKS ABOUT UNNECCESSARY THEORIES THAT CANNOT BE UNDERSTOOD BY HIMSELF , YET HE THINKS HE IS TO BE LISTENED TO BECAUSE HE IS A THINK TANK.??? HE SHOULD ALLOW THE GOVERNMENT THAT GAHANAIANS VOTED FOR TAKE DECISIONS ON BEHALF OF THE PEOPLE AND NOT ONE MAN THINK TANK IMANI. THE ABSURDITY IS BECOMING TOO MUCH.
 
Name: Kojo B
Franklin, can you please translate your plenty "grammar" into a simple strategic steps that this govt can immediately take. Because sounds like you are the only smart thinking guy in Ghana. Perhaps you want the govt to consult with you on every policy decision or agreement before anything is done. That ain't gonna happen, so suit up for a bumpy ride. Stop playing catch up because the train will soon leave you far behind your voice will no longer be heard. Once upon a time you called Hon Otiko Djaba a pale shadow or Nana Oye only to name her as one of the high performing Minister. Were you wrong then and coyld you be wrong now? Any lessons learnt from always being judgmental and speaking too soon?
 
Name: Andrews Amoako
Former president Mahama handing the Bauxite to his brother alone and the government getting $2 billion to do infrastructure for the country, which one is better. Frank Cudjoe you see noting wrong with the Mahama family taken over the national assets but rather the government getting something for the whole people of Ghana is rather your problem.By their fruits you shall know them, you and your deputy Bentil analysis shows what you people had from the previous government.The honey is no more flowing hence this reckless assessment of issues concerning this country.
 
Name: Kofi kramo
I am getting tired of these weasels calling themselves Think tanks who think they are experts in everything. Think tanks i know are experts in particular field of endeavor. Why do they always think governments do not know and they alone know ahba. Anyway when they talk then their financiers who do not want us develop will throw in more money for them they will see he is working.
 
Name: k.o
he wants to be an authority in everything in the country.
 
Name: IMANI CUDJOE IS JUST A KINDERGARTEN BOY WHEN IT COMES TO POLICY FORMULATION AND IMPLEMENTATION
THIS IMANI CUDJOE IS JUST A TALKATIVE, WHO TALKS WITH NO KNOWLEDGE AND DETAILS OF ANYTHING OR POLICY HE CRITICISES. HE IS ONLY INTERESTED IN MAKING NOISE, TO SEEK HIS OWN FIFTEEN MINUTES OF FAME. AS EMPTY AS HE IS, HE MAKES NOISE TO EQUAL HIS EMPTINESS. IMANI CUDJOE IS THE JACK OF ALL TRADES AND MASTER OF NONE. HE SHOUTS LOUDEST AND MAKES NO SENSE IN ANYTHING HE SAYS, BECAUSE HE DOES NOT WAIT TO GET DETAILS AND FACTS OF ANY POLICY HE SHOUTS AGAINST, ONLY FOR HIS IGNORANCE TO SURFACE WHEN THE DETAILS OF THE POLICY IS REVEALED AND IMANI CUDJOE NEVER SAYS SORRY FOR HIS KINDERGARTEN BOY'S OUTBURSTS, WHEN HE IS EXPOSED AS KNOW-IT-ALL, YET KNOW-NOTHING BRAGGAT.
 
Name: ME MAN NTI
Where were you when John mahama handed over the Ashanti bauxite to his brother Ibrahim? whatever you people will do, the agreement has been signed and the beneficiaries are Ghanaians you can count yourself out who cares? Sofo line interchange has collapsed if ndc had thought well of that region with vast mineral resources they wouldn't have used inferior materials to build which has led to the collapse, they deserve better than none Ashantis enjoying from their endowed wealth. You can do whatever who cares? the bauxite is in the rightful hands and they will make sure everyone gets deserved share! don't piss me with your bogus think tank!
 



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