China Eximbank provides $30 million loan for Phase 1 of E-Government Platform Project (Linked to Record ID#58511)

Project narrative

On June 18, 2006, China Eximbank and the Government of Ghana signed a $30 million loan agreement for Phase 1 of the E-Government Platform Project. This loan carried the following terms: 2% interest rate, 20 year maturity, and a 5 year grace period. The final maturity date is September 21, 2026. The loan’s (principal) amount outstanding was GHS 85,800,000 ($15,178,571) as of December 31, 2020 and GHS 81,000,000 ($15,576,923) as of December 31, 2021. The project involved the deployment of a Wide Area Network (WAN) to cover 10 regional capitals [Sekondi (Western), Ho (Volta), Accra (Greater Accra), Koforidua (Eastern), Kumasi (Ashanti), Cape Coast (Central), Sunyani (Bono), Tamale (Northern), Bolgatanga (Upper East) and Wa (Upper West)] and 5 towns (Tarkwa, Obuasi, Tema, Nkawkaw and Winneba). It also involved the development of a National Data Center near the Kofi Annan ICT Centre in Accra to promote the integrated use of ICT and improve efficiency and transparency in governance and facilitate storage, management and dissemination of data for both public and private establishments. A secondary data centre was also created in Kumasi to serve as a back-up for the primary National Data Center (with disaster recovery capabilities). Huawei Technologies (GH) S.A. Ltd. — a local subsidiary of Huawei Technologies Ltd. — was the contractor responsible for implementation. Phase 1 started on August 13, 2007 and was completed in March 2013. Huawei’s activities in Ghana were plagued by controversy during the implementation of this project. In 2012, the Alliance for Accountable Governance (AFAG) called for Huawei Technologies (GH) S.A. Ltd. to be kicked out of Ghana because of its alleged illegal involvement the country’s politics. AFAG provided documentary evidence that Huawei provided sponsorship to the ruling National Democratic Congress (NDC) in the form of party paraphernalia, which contravenes the Political Party’s Act, Act 574 of Ghana. AFAG provided invoices to journalists, demonstrating that Huawei Technologies (GH) S.A. Ltd. printed NDC paraphernalia such as t-shirts, key holders, and handkerchiefs with two other Chinese companies to the tune of about $150,000 between March and July 2012.