The Chinese government has given approval for the release of $562-million loan to Ghana towards the construction of the Bui Dam in the Brong Ahafo Region.

The Ghana government has already paid $60 million being its part of the financial obligation towards the realisation of the project.

This came to light when a delegation from Sino-hydro Corporation, the Chinese construction firm executing the project, paid a courtesy call on President J.A. Kufuor in Beijing last Friday.

With this final approval of the part of the bargain from the Chinese side, the way is now clear for the speedy execution of the project, which has been on the drawing board since 1920.

On completion, the Bui Dam is expected to generate 400 megawatts of hydro-electric power to complement the country’s energy supplies, which, for many years, had depended on the Akosombo and Kpong dams.

The Group President of the Sino-hydro Corporation, Mr Fan Jixiang, said the company was fully aware of the attention the President and the government of Ghana had paid to the project and was, therefore, fast-tracking the execution of the project.

He said the company had received full payment from the government of Ghana and noted with satisfaction the final approval given by the Chinese government for the release of funds under the Chinese EXIM Bank facility for the project.

President Kufuor said with the final blessing given for the release of funds, he expected that the project would be executed at top speed.

He said the project was located in the rural part of Ghana and was a landmark endeavour expected to open up the area for massive development.

He said the government was further considering the execution of four smaller hydro-electric dams by Sino-hydro depending on terms which would be provided by the company.

Earlier, President Kufuor granted audience to the President of Poly Technologies of China, a Chinese conglomerate which deals in military hardware, energy and real estate development and culture, in Beijing.

President Kufuor indicated the determination of the government to equip the security agencies to enhance their operational effectiveness and capabilities.

For example, he said, the government was at the moment interested in equipping the Ghana Navy to enhance its ability to protect the country’s territorial waters from being used for drug trade and from intrusions against the emerging oil industry.

He expressed the desire of the government to cooperate with the Chinese business community for mutual benefit.

The President of the Poly Technologies, General Jiang Lianxiang (retd), said his company, among the top brass of the Chinese companies, was the only Chinese entity allowed to deal in military exports and imports.

He said the company was engaged in discussions with the Ghana Navy for the supply of two patrol boats to protect the oil fields in Ghana.