NPP: NDC Offers All Ghana’s Gas To China For 19 Years
The New Patriotic Party has disclosed what it terms a dangerous agreement President Mahama and his government is seeking to secure with China.
Revealing some aspects of this intended agreement between Ghana and China at a Press Conference in Accra today, NPP’s Policy advisor Mr. Boakye Agyarko said, “the Mahama Cabinet has recently given approval to a proposal which they hope will entice the China Development Bank to re-activate the remaining $2 billion of the $3 billion loan which the Chinese discontinued after disbursing $1 billion of it to Ghana.”
In the original Master Facility Agreement, he said, President Mahama committed Ghana to supplying, as collateral security, 13,000 barrels per day of crude oil up to 2027 to service the CDB facility.
“The Chinese eventually considered this as insufficient because of the slump in oil prices, refusing to release the remaining tranches,” he said.
Mr. Boakye Agyarko said, in the new offer to CDB, the Mahama government is proposing to export to the Chinese, all the Natural Gas Liquids (NGLs) to be processed by the Ghana Gas processing plant at Atuabo from 2018, estimated at the value of $1.5 billion.
Quoting from the ‘Decisions Memorandum’ on the facility drafted by the Mahama administration this year, Mr. Boakye Agyarko said, the Mahama administration intends to “release up to US$450 million from the revenue accruing from the sale of Lean Gas over 2016 to 2018 for purposes of resolving shortfalls in GoG payment obligations under the MFA for 2016 to 2021”.
“This means that the gas that we are hoping will power our industries, offices, hospitals and homes, will rather be used to service a commercial loan of highly questionable prudence,” he stated.
The NPP’s Policy Advisor also revealed how the NDC is looking up to the Chinese to find an additional US$1.9 billion for the Ghana Gas Processing Plant to build the export infrastructure to make it possible to export all the NLGs to the Chinese.
“To cap it all, the NDC brains, if I may stress, big brains putting this deal together, led by Ato Ahwoi and Deputy Minister of Finance, Cassiel Ato Forson, are demanding US$6 million to fund the work of the Task Force, which the President set up to unlock this wonderful ‘gift’ from China. And, that money is coming from the Ghana Infrastructure Investment Fund – funds that Finance Minister Seth Terpker went to the international money market to borrow at a very expensive rate,” he said.