Government`s resolve to ensure local production of sugar through the revitalisation of the Komenda Sugar Factory has received a major boost following the approval of Parliament an additional credit facility of US $24,540,000 for the purposes of Sugar Cane and Irrigation Development in the Komenda area.
The Export-Import Bank Credit facility between the government of Ghana and the Exim Bank of India is expected to significantly help reduce the 200, 0000 metric tons (MT) of sugar valued at US $200 million imported annually for domestic and industrial consumption.
The project scope involves the development of irrigation facility to support the production of sugar cane as raw material to feed the factory and support a large out grower community within the locality.
A total of 2000 acreage of land belonging the factory would be cultivated to produce 100, 000 tons of sugarcane per annum and offer additional support to other acreage of out grower plantations.
Out growers would be assisted with improved seed variety and extension services to enable them increase production levels whiles creating jobs for the youth.
Irrigation schemes would be developed and constructed to serve the farms of the Komenda Sugar factory and adjourning communities.
Government after a parliamentary approval secured an amount $ 35 million from the India Exim Bank which was used to revive the Komenda Sugar Factory as efforts to reduce expenditure on sugar imports annually.
The $ 24.54 million additional deal would therefore address the challenge of reliance on local sources of raw materials to feed the factory.
Local production currently can only supply 30% of the factory`s requirements.
The terms of the $ 24.54 million additional credit facility includes a five year grace period for starting repayment and a twenty year repayment period at an interest rate of 1.5% per annum, a commitment fee of 0.5% and a maturity period of twenty-five years.
By CHRISTIAN KPESESE
