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$24.5m credit to revive dormant Komenda factory

Government is moving to revamp the Komenda sugar factory by relying on a 24.5 million dollar facility for the cultivation of sugarcane to feed the plant.

Appearing on the floor of parliament on Thursday, 2 November to answer questions relating to plans being made to bring the factory to life, Trade and Industry Minister Alan Kyerematen said the government will “develop and implement a plantation and out-grower scheme using the 24.5 million dollar Indian EXIM credit facility to ensure the cultivation of about 14,100 hectares in the Central and Western regions”.

The factory has been shut down due to a myriad of challenges including lack of raw materials and inadequate funding.

Outlining a number of measures being implemented based on recommendations by experts to revive the factory, Mr Kyerematen revealed that government will ensure full compliance with the terms and conditions of the contract it has with the contractors by ensuring that “the remaining parts of the plant are fully installed and operational”.

Additionally, they will “negotiate to pay outstanding debts due to the contractors to ensure a full takeover by government of the factory assets”.

Mr Kyerematen added that they are deliberating on the appointment of “a governing board of directors to provide high level strategic direction and leadership for the company pending a full decision on shared diversified options which is currently being explored with the advice of the transaction advisor for this particular project”.

Source: Ghana/ClassFMonline.com/91.3FM

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