Finance Minister, Seth Terkper has dismissed reports that government is finding it difficult to secure the 3 billion dollar Chinese loan from China Development Bank.
Policy think tank, Imani Ghana has raised doubts about government’s ability to secure the loan which was announced two years ago.
According to the organisation, there seems to be some policy confusion regarding the project.
It questioned the capacity of China Hasan International Holding of Hong Kong, government’s public-private-partnership partner, to execute the project, whose real value is not known.
Mr. Terkper, speaking at Citi FM’s round table discussion on Tuesday, said the loan was being disbursed in tranches.
“The CDB loan is a project loan and is disbursed when you complete phases of the project. It is similar to the World Bank, African Development Bank and all the legal loans that we get so the fact that you have signed $3billion and committed it does not mean you will have all of it transferred to Ghana,” he stated.
Hon Terkper further explained, “When you finish $500million, payment is made for that $500million; when you finish $450 million, certificates are presented. For example, the expectation that somehow for the gas processing plant, we would have $750million brought in, as I have heard from the commentary, is erroneous because that is not how project loans are disbursed.”