The government is set to finalize a 20-year lease agreement with a new investor to restore and sustain operations at Komenda Sugar Development Company Limited, reports Modern Ghana.
Trade and Industry Minister Mr Kobina Tahir Hammond announced on Wednesday following his visit to the sugar mill, which has been out of operation for over seven years since its commissioning.
The new investor, West Africa Agro Limited, is currently importing about 550 tonnes of raw sugar to refine into sulphurless white sugar. The company aims to transition to producing sugarcane sugar within three years.
Mr Hammond disclosed that the government has invested approximately GHS 45 million to refurbish the company, which has attracted the investor’s interest. “We are leasing our assets to the company, which will operate them and compensate us accordingly… I am considering a lease term of 15 to 20 years with an extension option,” he said.
Initially, the company will focus on refining imported raw sugar. According to Mr Hammond, “Documentation suggests that we should expect some refined sugar from sugarcane production in about three years.”
The lease agreement stipulates that, by the end of this period, sufficient sugarcane will be cultivated on 31,000 hectares of land, including 6,000 hectares on the project site. This development is expected to lead to full-scale factory operations, shifting from raw sugar refining to processing sugarcane into sulpherless white sugar.
“We are committed to seeing the plant become operational and avoid it becoming a white elephant,” Mr. Hammond noted, adding that a Board has been established to oversee the company’s success.
A 2017 Parliament report, analyzed by the Ghana News Agency, revealed that the 1,250TDC plant, which cost US$37.82 million, only managed to conduct a test run that produced inedible sugar. The test run was incomplete due to operational issues, including failures to meet melt clarity standards.
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