Sinopec provides $188m loan for Ghana gas plant

China Development Bank (CDB) has disbursed $188 million to SINOPEC for Ghana’s gas infrastructure project. The transfer was done by the bank last week, according to local reports in Ghana.

SINOPEC is building the CDB funded Ghana gas plant at a cost of $750 million and is supposed to meet Ghana’s demand for gas and also make the country a net gas exporter. But the project has stalled many times due to funding issues.

The $188 million investment is part of a $3 billion CDB loan signed by Ghana with China in 2011 for various infrastructure projects in the West African country. The country has so far drawn a little over $200 million since it signed the agreement with the Chinese government in 2011.

The release was made possible after the Ghanaian parliament made amendments to the agreement demanded by the Chinese government as a condition to resume the disbursement.

The chairman of the Finance Committee of Parliament, Jame Avedzi recently said that the China Development Bank would recommence the disbursement this month after parliament’s amendments.

Mr. Avedzi, however, maintained that the facility would be disbursed as and when the various phases of the projects are completed.

Government has since last year being expecting about $750 million of the facility for the construction of the Gas Processing plant in Atuabo in the Western Region.