China finances oil and gas development

Government and the China Development Bank have entered into a strategic cooperation framework agreement for the financing of projects in the development of the oil and gas resources.

The financing projects will cover gas processing, transportation and the petrochemical industry and the development of critical oil industry facilities such as production and storage facilities, supply facilities, and security and monitoring systems. It will also include educational, health, road infrastructure and agricultural sectors.

Under the agreement, the Ministry of Finance and Economic Planning with the Ghana National Petroleum Corporation (GNPC) will be allowed direct negotiations with the bank for financing projects in the various sectors.

Officials are tight-lipped as to the exact amount and the details which the bank might lend, which will form part of the negotiation between the bank, GNPC, and Ministry of Finance.

Minister of Finance, Dr Kwabena Duffour, and Nana Boakye Asafu-Adjaye,Managing Director of GNPC signed on behalf of government, while the Deputy Governor of the China Development Bank, Mr. Zhao Jianping, signed on behalf of the bank at a ceremony in Accra.

The agreement will provide the country the opportunity to mobilise the necessary finances for the full implementation of the oil and gas infrastructure without any difficulty, said Nana Asafu-Adjaye.

“It will enable the GNPC to mobilise the necessary finances to develop infrastructure, ensure the monetisation of the gas from the Jubilee Field, and support the processing plant of the corporation,” he said.Dr. Duffour said the agreement which will cover road infrastructure of the farming areas, will enhance accessibility and promote business and the growth of the agricultural sector.

“Ghana was fortunate to have entered into the agreement with the bank, as it is the biggest financial institution in the world; emphasizing that signing of the agreement will deepen the bilateral relations between Ghana and China.The expected finances from the bank will contribute to the attainment of first-class oil and gas industry in the country, which he said was in line with the GNPC’s mandate,”

Dr. Duffour stated.The signing of the agreement marks a new page in the economic and political ties between the two countries and Ghana and China have enjoyed good relations in the ages past, Mr. Jianping said.