China Shipbuilding Trading Co. Ltd provides $84.9 million supplier credit for Phase 1 of 37 Military Hospital Expansion Project

China Shipbuilding Trading Co.

Ltd provides $84.9 million supplier credit for Phase 1 of 37 Military Hospital Expansion Project In March 2022, China Shipbuilding Trading Co.

Ltd and the Government of Ghana’s Ministry of Finance signed a $84,994,050 supplier’s credit (loan) agreement for Phase 1 of the 37 Military Hospital Expansion Project.

The borrower was expected to make 24 semi-annual repayments over a 144-month period.

The borrower was also required to purchase a Sinosure export supplier's credit insurance premium (worth 5.6% of the principal and interest of the supplier's credit).

The proceeds of the loan were to be used by the borrower to finance 85% of the cost of the commercial contract for Phase A of the 37 Military Hospital Expansion Project. The Government of Ghana was responsible for paying the remaining 15% ($14,998,950). The total cost of the commercial contract for Phases A, B, and C is $289,900,000.

The purpose of the project is to construct a new 700-bed facility, with medical equipment designed to incorporate a wide-ranging medical area, VIP medical area, scientific research and education area, administration, logistics area and living quarters with all functional areas being relatively independent while closely related.

Over 20,000 pieces of medical equipment, facilities, furniture and logistics would be installed as part of the expansion project.

It will consist of a new nursing school and other facilities besides the original 37 Military Hospital, and to build accommodation for GAF personnel and supporting facilities that will be re-located because of the expansion works.

The project scope includes a 35,600m² underground parking lot, medical complex building, isolation ward, administrative and graduate building, oxygen generation station, solid waste incineration treatment station, central kitchen, senior officer canteen building, emergency power station and sewage treatment station.

The hospital structure will be a cast-in situ reinforced concrete frame. The roof will be reinforced concrete, and the medical street will be covered with grid glass for day-lighting. The internal and external wall maintenance structure will adopt small concrete blocks. The windows will be made of aluminum glass with glass plates.

The doors will be composed of wood panel, iron and glass-aluminum door. Interior rooms will be painted with acrylic paint on walls and ceilings in cement mortar finishes.

The floor will be provided with ceramic tile and ceramic skirting board, and the parts of the hospital are elastic polyurethane floors. Toilet area walls will receive glazed wall tiles. Services will include cold and hot water, electrical installations, air-conditioning installations. External works comprise of roads, carparks, paved areas, grass and planted areas.

The hospital expansion project is to be completed within 32 months. There are some indications that the China Shipbuilding Trading Co.

Ltd loan for Phase 1 of the 37 Military Hospital Expansion Project may be financially underperforming vis-a-vis the original expectations of the lender.

According to the World Bank’s International Development Statistics, the Government of Ghana had accumulated principal and interest arrears to one or more official sector Chinese creditors worth $908,337,346.70) in 2020 ($763,228,526.60 in principal arrears and $145,108,820.10 in interest arrears).

Then, on December 19, 2022, the Government of Ghana announced a sovereign default. suspending debt service on its Eurobonds, its commercial loans, and most of its bilateral loans.