Ghana parliament to debate China's $3 bln loan

Ghana's parliament will begin debating on Monday a $3 billion loan facility awarded by China Development Bank to the west African nation to finance infrastructure projects including in the oil and gas sector, a government statement said.

Ghana's deputy minister for information Samuel Okudzeto Ablakwa said Ghana's lawmakers had been recalled to approve a $3 billion facility from the China Development Bank.

The money is part of a total $13 billion in agreements signed in September 2010 between Ghana and the China Development Bank and China Exim Bank.

Ghana has said it will use the deals to finance infrastructure projects and transform its economy through gas- and oil-driven industrialisation.

The $3 billion would be used partly to finance a western corridor gas infrastructure project, the eastern corridor petroleum terminal and modernisation of some of the country's rail lines.

The chairman of Ghana's parliament finance committee said he expected the loan to be approved by the end of the week.

We will be putting our recommendation before the House for debate and I believe the loan will be approved by the end of the week, James Avedzi said.