Ghana has recently signed a $10 billion memorandum of understanding (MOU) with China to develop the bauxite project with its railway and converting bauxite into aluminium, the country’s Senior Minister Yaw Osafo-Maafo said on Wednesday.
“The money will come from the Chinese Development Bank, the implementation of the project will come from other agencies, infrastructure agencies in China, like China Railway,” he said.
The funds from Beijing would contribute towards building 1,400 km of a planned 4,000 km railway network, which would connect bauxite mines and production sites as well as establish a rail link into neighboring Burkina Faso.
Asked about the government’s plan to issue a 10 billion cedi ($2.25 billion) bond, Osafo-Maafo said he expected the debt to be issued towards the end of the year, and with maturities ranging from 5-15 years.
Earlier in June, Ghana had named Standard Chartered Bank and local lender Fidelity as lead managers for the issue expected to clear debts owed by public sector energy utilities.