Brazil To Finance Tamale Airport Project

Brazil has approved a request from Ghana for an urgent consideration of financing for the US$174 million Tamale International Airport project. Responding to Vice President John Mahama�s request in a bilateral meeting in Brasilia last week, the Brazilian authorities said the request is feasible and they are ready to urgently finalise discussions. A Brazilian Infrastructure Development Company, Queiroz Galvao, will handle the construction which is to be financed by Brazil�s national EXIM bank, BNDES. Queiroz Galvao has already signed a Memorandum of Understanding with the Ministry of Transport, and completed the necessary designs and phasing for the works. Mr. Mahama said the Tamale International Airport, which will be managed by the Ghana Airport Company Limited, will be self-financing and will repay the financing from its operations. He therefore requested the Brazilian authorities to unlock the financing of the project from the ongoing discussions of a Master Facility Agreement (MFA), to be handled as a single-purpose project. The construction of the International Airport in Tamale will be the fulfilment of a major campaign promised by President John Atta Mills, but will be part of the policy to transform the savannah regions of Ghana with a view to bridging inequalities between the North and South. According to Mr. Mahama, the project will start with expansion of the runway to accommodate large-body Aircraft and also the construction of an international standard terminal building. The next phase will be the provision of ancillary services including hangars, maintenance area, catering and ground-handling. The last phase will be construction of a cargo village targetting fresh-fruit farmers that are setting up camp in the savannah regions and the various processing companies being set up in the area. Brazil is already the sole buyer of the products of the PBC Shea Factory recently inaugurated in Buipe in the Northern region, while a number of Brazilian private sector agriculture companies are partnering with SADA and other local companies to set up commercial farms in the region. Brazil�s Deputy Minister for Industry and External Commerce, Alexandro Teicheira, indicated that his government remains committed to its bilateral dealings with African countries, especially Ghana, and will work on the Project financing request once they receive a formal request to remove the project from the ongoing MFA discussions. He also advised against Ghana�s attempt to amend the finalised proposal for the northern part of the Eastern Corridor Road. This, he said, is because it would lead to reopening of the entire negotiations and delay the project. Vice President John Mahama also met with the management of Queiroz Galvao, led by the President and CEO, Marcus de Queiroz Galvao, in Brasilia.