Find another financing option for gas project – President to MOF

Citi News sources at the Flag Staff House say President John Mahama has asked the Minister for Finance to urgently arrange bridge financing for the Ghana Gas Infrastructure Project at Atuabo in order to meet timelines for delivery of the project.

The directive follows delays in the disbursement of the project funds by the China Development Bank (CDB).

According to the sources the President’s directive is aimed at securing short term financing to ensure delivery of the project on schedule.

Currently $309 million of payment certificates pre-financed by Sinopec, the EPC contractors, remain unpaid because of the inability of CDB to disburse.

The project, which was scheduled for completion in the third quarter of this year, has already seen a shift of delivery time to the end of the year.

The Ghana Gas Project will see delivery of gas to thermal plants in the Aboadze enclave and reduce current reliance on light crude oil and the West African Gas Pipeline, which has so far remained unreliable.

 

Source: Citi News/Ghana