Komenda Sugar: Trade Minister Says Government Will Lease Factory To Indian Firm For 20 Years
- Trade and Industry Minister, K.T. Hammond, has announced plans to lease out the Komenda Sugar Factory
- The factory would be leased to Indian firm, West Africa Agro Limited, for a renewable 20-year term
- He said the leasing of the sugar factory was intended to bolster its operations to meet the local demands
The government has announced plans to lease the Komenda Sugar Development Company Limited to an Indian firm, West Africa Agro Limited, for a renewable 20-year period.
The Trade and Industry Minister, K.T. Hammond, disclosed this during a recent visit to the site with potential investors.
Source: UGC
He said the leasing of the sugar factory to the Indian company would boost the factory’s operations to meet the local demand.
The initiative would also be a second attempt to revive the sugar factory since 1964.
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The Komenda Sugar Development Company Limited was established in that year but closed its doors shortly after.
The John Mahama-led government rehabilitated it in 2016, securing a $35 million loan from the Indian Exim Bank and an additional $24 million investment to rehabilitate the factory’s operations.
The factory is at present undergoing a test run in preparation for full operations.
K.T. Hammond noted that leasing the factory to the Indian firm would not change its ownership.
Per Citi News, he said the company would remain 100% Ghanaian-owned but have Indian operators, and the government would receive dividends from the firm's use of the factory and its equipment.
He called the leasing deal a 'fulfilment of President Nana Akufo-Addo’s promise'.
Kyerematen says Komenda Sugar Factory 98% complete
In 2022, then-Trade Minister Alan Kyerematen stated the Komenda Sugar Factory was 98% complete and promised that it would begin test runs in July of that year.
The Minister told Parliament on Tuesday that major restoration works have been completed on the factory equipment.
The minister was answering questions from MPs about the state of Komenda Sugar, which became a hot topic after it was shut down.
The trade and industry minister said the refurbishing included:
- Installation of a new pipeline to and from the plant to the molasses stand - 100% complete
- Work on refectories, lagging, the boiler furnace, and chimneys - 100% complete
- Testing of vacuums and water at the boiler house - 100% complete
- Testing of steam pressure for the turbine (set to generate roughly three megawatts of electricty
- General repair work.
Dumelo dares Akufo-Addo to give Komenda factory
YEN.com.gh also reported that John Dumelo has challenged President Akufo-Addo's government.
In a tweet, the actor stated that he has the capacity to improve the dwindling fortunes of the factory.
Some people backed him, while others were not sure that he had the power to make any changes.
Proofread by Bruce Douglas, senior copy editor at YEN.com.gh
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Source: YEN.com.gh
