The government intends to lease Komenda Sugar Development Company Limited to West Africa Agro Limited, an Indian company, for a 15 to 20-year period that can be renewed.
According to K.T. Hammond, Minister of Trade and Industry, the goal of this project is to restart the company’s operations in order to meet domestic demands.
The Komenda Sugar Development Company Limited, popularly known as the Komenda Sugar Factory, was founded in 1964 but ceased operations for a long period of time.
In 2016, the former NDC government obtained a $35 million loan from the Indian Export-Import Bank, which was followed by a $24 million investment to modernize the factory.
In order to get ready for full production, the factory is now going through a test run. Minister of Trade and Industry K.T. Hammond recently declared during a tour that the government is willing to lease the factory to West Africa Agro Limited for a maximum of 20 years, with the option to renew.
The corporation has a board of directors. We have placed them in command. But Ghana owns it entirely. However, we are renting it. A firm that will be working on it is leasing our assets. Use our resources, including our equipment, and then pay us. In the end, we won’t own any shares in their products; instead, the business will own them entirely. We want to give them ownership of the products for 15 to 20 years, with the possibility of an extension or renewal,” he said.
KT Hammond emphasized the government’s dedication to reviving the factory and chastised the previous government for its carelessness.
“There was a rush to commission it in 2016, just before the next election.” It was commissioned and has not worked since. Nothing was put in the right spot. As you now see it. A lot of things went wrong at this factory. I’ve mentioned it several times.
“Those of you who recall, in response to a question in parliament, I explained the origins of this and why it hasn’t worked, how much money has been spent on this structure and how much should have been spent, and how my government, the New Patriotic Party (NPP), has had to invest to get it running.
“I informed the entire nation that a factory with this level of capability ought to cost approximately 18 million dollars,” he continued.
BY: APPIANIMAA MERCY
