The government is set to lease Komenda Sugar Development Company Limited to an Indian-based firm, West Africa Agro Limited for a renewable term of 15 to 20 years.
Minister of Trade and Industry K.T. Hammond states that this initiative aims to revive the company’s operations to meet domestic demand.
The Komenda Sugar Development Company Limited, also known as the Komenda Sugar Factory, was established in 1964 but halted operations for an extended period.
In 2016, the previous NDC government secured a $35 million loan from the Indian Export-Import Bank, followed by an additional $24 million investment to revamp the operations of the factory.
The factory is currently undergoing a test run in preparation for full production. During a recent tour, Minister of Trade and Industry K.T. Hammond announced that the government is prepared to lease the factory to West Africa Agro Limited for up to 20 years, with renewal options.
“It’s a company which has a board. We just put them in charge. But it’s 100% Ghana owned. But we are leasing it. We are leasing our assets to a company that is going to work on it. I mean, use our assets, our equipment, use it, and then pay us back. At the end of the day, we’re not going to have shares in their products, but the company is 100% going to own, thinking of giving it to them for 15 to 20 years with an option of an extension or some sort of renewal,” he noted.
KT Hammond highlighted the government’s commitment to revitalizing the factory and criticized the previous administration for its lack of diligence.
“2016 into the next election, there was a rush to commission it. It was commissioned and hasn’t worked since. Nothing was put in a proper place. As you now see it. A lot of things went wrong with this factory here. I’ve said it many times.
“Those of you who recall, in an answer to a question in parliament, I explained the genesis of this and why it hasn’t worked, how much money has been expended in this edifice and how much should have been the actual cost, and how my government, the New Patriotic Party (NPP), has had to invest and get it running.
“I told the whole country that a factory of this capacity even now should be costing about 18 million or so dollars, “he added.
Source: Citinews
