GHANA – The Cabinet of Ghana has approved Park Agrotech Limited, a Ghanaian company in the agribusiness sector, as the preferred strategic investor for the Komenda Sugar Factory.
The Komenda Sugar Factory, which was built by the Ghanaian government at a cost of US$35 million from an Indian EXIM Bank facility, was inaugurated in May 2016.
But many challenges, including the unreliable supply of sugarcane for continuous processing after the preliminary test run, hampered the operations of the company.
Mr Alan Kyerematen, Minister of Trade and Industry has revealed that that Agrotech is expected to work with STM Projects Limited, an Indian company with extensive experience in the management and operation of Sugar Mills and plantations both in India and other parts of the world.
The Minister said over the first three years of the agreement, Agrotech would invest US$28 million in capital expenditure and working capital, including paying an annual concession fee of US$3.3 million for a period of 15 years.
“Following the approval by Cabinet as required by conventional practice, the Transaction Advisors entered into final negotiations with the successful bidder with the view to entering into concession agreement for the operations of the Komenda Sugar Factory,” the Trade and Industry Minister said.
The Agreement would be effective upon completion of Condition Precedent, which includes the approval of the Agreement by Parliament, adding that the required documentation would be brought to the House in due course, reports Ghana Web.
The Factory was set to begin operations in mid-2020 but there has been a delay as it was deemed necessary for the finalization of the National Sugar Policy, which was intended to provide the strategic policy framework for the implementation of the project.
Mr Alana explained that after series of extensive stakeholders’ consultations, the National Sugar Policy was finally approved by Cabinet in 2019 and paved the way for the Concessionaire to be formally introduced to the Chiefs and Elders of the Komenda Traditional area in November, 2019.
The formal agreement between Park Agrotech Limited and Komenda Sugar Development Company Limited had now been executed.
“As soon as the restrictions on foreign travels arising from the Covid-19 pandemic is lifted and after all the necessary and relevant protocols and approvals have been secured, the technical partners of Park Agrotech will begin a comprehensive programme action to bring the Komenda sugar factory back to life,” said Mr.Alana.
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