The Minister for Finance, Ken Ofori Atta, has rubbished assertions by the Minority in Parliament and other Civil Society Groups that government’s arrangements with Agyapa Royalties Company to leverage the country’s mineral royalties to secure over one billion dollars, is a bad deal
Parliament has approved five agreements to allow a special purpose vehicle (SPV), Agyapa Royalties Limited, to leverage the country’s mineral royalties to secure about $1 billion.
However, some Civil Society Groups have kicked against the move, saying the deal lacks transparency and an attempt by some government officials to milk the country.
But speaking to the press yesterday, Mr Ken Ofori-Atta, maintained that the deal will place government in a better position to leverage the country’s mineral royalties to finance large infrastructural projects, especially in mining communities.
“This deal is not hasty; it is not rushed; and not shrouded in any secrecy because we have been working at it since 2018. We are confident that Agyapa is going to be the largest company in Africa in the mineral royalty space and it is in the best interest of this country,” he clarified.
Parliament on August 14, 2020 approved the agreements to enable the country to enjoy maximum value from its mineral resources. The approval includes the Minerals Royalties Agreement, the Amended and Restated Minerals Royalties Investment Agreement and the relationship agreement among the government, the MIIF, Agyapa Royalties Limited and ARG Royalties Ghana
The rest are the assignment agreement between the MIIF and Agyapa Royalties Limited for the assignment of the right of the fund to Agyapa to receive the royalty value due from ARG under the investment agreement for the acquisition of the allocated minerals royalties from the Fund in consideration for shares to be issued by Agyapa to the Fund at an agreed price of $1 billion.
Per the agreement, the country is expected to secure one billion dollars using Agyapa Royalties as a Special Purpose Vehicle to finance large infrastructural projects. The company will generate funds from the capital market as an alternative to the conventional debt capital market transactions.
The funds will be raised from the Ghana Stock Exchange (GSE) and the London Stock Exchange (LSE).
Ghana | Atinkaonline.com
