Komenda Sugar Factory: Strategic investor selected by Cabinet to invest $28 million
- Cabinet has settled on a strategic investor for the Komenda Sugar Factory
- Park Agrotech Limited would commit $28 million to capital expenditure and working capital
- It is also expected to pay an annual concession fee of GHC3.3 million for a period of 15 years
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YEN.com.gh has learned that Cabinet has approved a Ghanaian company in the agribusiness sector, Park Agrotech Limited, as a strategic investor for the Komenda Sugar Factory.
This was announced by Alan Kyeremanteng, the Minister for Trade and Industry, in Parliament, on Wednesday, June 3, 2020.
The minister informed Parliament that Agrotech is likely to team up with STM Projects Limited, an Indian company with extensive experience in the management and operation of sugar mills and plantations in India and other parts of the world.
Source: UGC
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Per a report by myjoyonline.com, he added that the transaction advisors entered into final negotiations with the successful bidder with the view to entering into a concession agreement for the operations of the Komenda Sugar Factory.
According to him, in the first three years of the agreement, Agrotech would invest $28 million in capital expenditure and working capital.
The company is also expected to pay an annual concession fee of GHC3.3 million for a period of 15 years.
Kyeremanteng went on to say that during the final negotiations it became necessary for action on the implementation of the project to be delayed until the finalization of the National Sugar Policy, which was intended to provide the strategic policy framework for the implementation of the project.
He explained that after a series of extensive stakeholders’ consultations, the National Sugar Policy was finally approved by Cabinet in 2019.
YEN.com.gh understands that the agreement would be effective upon completion of Condition Precedent, which includes the approval of the Agreement by Parliament.
In other news, plans are in place to roll out the “The Ghana Cares Programme” to save the economy from COVID-19.
The three-year programme was drawn to match the projected duration of the coronavirus in Ghana.
The Finance Minister, Ken Ofori-Atta is reported to have earlier projected that Ghana’s economy may take three years to recover from COVID-19.
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Source: YEN.com.gh
