IMF yet to gain clarity on US$2bn Sinohydro deal

By Hagar Ofosua

The International Monetary Fund (IMF) has responded to the minority's request for some clarification on Ghana’s US$2billion Sinohydro deal with China. 

 The Brittion Woods Institution has said it needs time to take a decision as to whether it qualifies as part of government debt or not. This comes following concerns raised by the Minority in Parliament over the deal.

The Minority in a letter dated,10th August 2018 and signed by its Leader, Haruna Idrisu, to the International Monetary Fund (IMF), asked the Britton Woods Institution for more clarity on the deal and to stop the Akufo-Addo government from securing $2billion of infrastructural development from Sinohydro.

Read Also: Akufo-Addo signs $2 billion Sinohydro deal in China ...

According to the Minority, such a quantum of money can affect the country's debt, and thereby thwart the efforts of government and the IMF in the management of the country's debt.

However The IMF chief, in confirming receipt of the letter, noted that given the transaction’s complexity she is unable to immediately answer questions posed by the minority.

“I have been in consultation with headquarters, including the legal department, and we are going to discuss this issue with the authorities during the upcoming seventh review mission under the Extended Credit Facility,” she said.

Reports indicate the upcoming seventh review mission under the Extended Credit Facility is likely to be held at the end of September.

Under the deal, Sinohydro Group Limited of China will provide $2 billion of infrastructure of government's choice in exchange for Ghana's refined bauxite.

Ghana will establish a refinery within the next three years and select its own partner to undertake the refining of the bauxite.
Sinohydro is a Chinese state-owned hydropower engineering and construction company.

Read Also: Minority vows to delve deeper into Sinohydro deal

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