The first phase of the projects under Engineering, Procurement and Construction (EPC) Contract Agreement will cover road and infrastructure projects that includes Kumasi Inner City Roads, Accra Inner City Roads, Adenta-Dodowa Dual Carriageway, Tamale Interchange Project and PTC Roundabout Interchange Project in Takoradi.
Others are Hohoe-Jasikan-Dodi Papase stretch, Western and Cape Coast Inner City Roads, rehabilitation of Oda-Ofoase-Abirem road and upgrading of selected feeder roads in the Ashanti and Western regions
According to a report laid by the Parliamentary Finance Committee, the projects will be financed by Sinohydro by way of deferral of payments under the EPC Contract, with the support of refinancing by one or more financiers and export credit insurance underwritten by Sinosure (an export credit agency in the People’s Republic of China).
The report further states that, Sinohydro has agreed to use its best endeavours to procure such refinancing equal to 85 per cent of the cost and to finance the project upon availability whereof.
“The Government of Ghana undertakes to pay the total EPC contract price to Sinohydro, using the proceeds from the sale of refined bauxite as source for funds” and “Sinohydro will be reimbursed the total cost of the EPC Contract by way of deferral of payments,” the report says.
According to the agreement, the payments would be effected over a period of 12 years after a three year deferred period.
It is expected that the construction of the roads would enhance the movement of people and goods while reducing vehicle operating costs, travel time, accident rates, pedestrian and vehicular congestion in the cities.
Engineering, Procurement and Construction (EPC) is a particular form of contracting arrangement used in some industries whereby the Contractor will be responsible for all the activities from design, procurement, construction, to commissioning and handover of the project to the End-User or Owner.
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By: Sammy Agyei/Frontpageghana/Ghana
