Project ID: 120

Chinese Government provides RMB 230 million interest-free loan for 17.4 KM Ofankor-Nsawam Section of Accra-Kumasi Trunk Road Rehabilitation and Expansion Project

Commitment amount

$ 67692158.80523704

Adjusted commitment amount

$ 67692158.81

Constant 2021 USD

Summary

Funding agency [Type]

China Ministry of Commerce [Government Agency]

Recipient

Ghana

Sector

Transport and storage (Code: 210)

Flow type

Loan

Level of public liability

Central government debt

Infrastructure

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2003-01-01

Planned start

2003-10-31

Actual start

2004-06-01

Actual complete

2006-06-19

NOTE: Red circles denote delays between planned and actual dates

Geography

Description

On November 1, 2002, China’s Ministry of Commerce and the Government of Ghana signed an RMB 100 million interest-free loan agreement for the Ofankor-Nsawam Highway Construction Project. This loan carried the following terms: 0% interest, 20 year maturity, and a 10 year grace period. The loan was scheduled for repayment in annual installments over a period of ten years from November 1, 2012 to October 31, 2022. The terms of the loan reportedly specify that the borrower (the Government of Ghana) could repay the loan with “export commodities” or “convertible currencies to be agreed by the two Governments”. The Chinese Vice Minister of Foreign Affairs Yang Wenchang and President John Agyekum Kufuor signed the loan agreement. Then, on December 20, 2003, the loan was ratified by the Ghanian Parliament. The Chinese Government reportedly increased the value of this loan commitment to RMB 230 million; however, the nature and timing of this “upsizing” are unknown. The project involved the rehabilitation and expansion of the 17.4 section of the Accra-Kumasi (N6) Trunk Road between Ofankor and Nsawam. It also included the construction of a 20 meter fly-over bridge over the rail line near Ofankor, which has a 13 ton capacity. China Railway Engineering Corporation and The China Railway No. 5 Group (CR5) were the contractors responsible for project implementation. Construction began in June 2004. The project was officially completed and handed over to the Ghanaian authorities on June 19, 2006.

Additional details

1. The Chinese project title is 中国援加公路改扩建项目 or 加公路改扩建项目 or 阿克拉-库马西17.4KM公路改扩建(一级公路). 2. The database of Chinese loan commitments that SAIS-CARI released in July 2020 does not not record the maturity or grace period of this loan.

Number of official sources

11

Number of total sources

31

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Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Ghana [Government Agency]

Implementing agencies [Type]

China Railway No.5 Engineering Group Co., Ltd. (CR5) [State-owned Company]

China Railway Engineering Corporation (CRECG) [State-owned Company]

Loan Details

Maturity

20 years

Interest rate

0.0%

Grace period

10 years

Grant element (OECD Grant-Equiv)

71.6021%

Bilateral loan

Interest-free loan

Investment project loan