Ghana’s finance minister, Ken Ofori-Atta, announced that it will reach a $2 billion agreement with Sinohydro Group Limited. The China government will provide funding and technical support to Ghana’s infrastructure project.

He said that this agreement will adopt the principle of mutual benefit and win-win. Hydropower Group Co., Ltd will invest $2 billion in infrastructure construction and will also get the right of exploiting bauxite resources in Ghana. An aluminum smelter will be built in Ghana in the next three years and it will choose partners to jointly refine the bauxite.

The Ghana Government believed that this agreement is in line with one of their strategies that bridging the slow development of country’s infrastructure through a new investment model based on natural resources. According to the 2015 Africa Infrastructure Diagnostic Report, Ghana needs $1.5 billion in infrastructure construction each year. However, the finance minister clarified that according to the agreement with China, $2 billion will not increase Ghana’s debt burden.

According to Ghana’s official estimation, the reserves of bauxite in Ghana exceed 1.5 billion tons. Beyond that, there are about 200 million tons bauxite reserves in Atiwa Mountains in Kyebi, 350 million tons in Nyinahin and 1 billion tons in Awaso. The value of these bauxite reserves is about $554.9 billion.