The Minister of Trade and Industry, Alan Kwadwo Kyerematen has promised that the Komenda Sugar Factory will commence production before the end of this year, 2021.
He explained that the Ministry of Trade and Industry, working in collaboration with its Transaction Advisor PricewaterhouseCoopers Ghana Limited, is in the process of concluding the Conditions Precedent for the activation of the Concession Agreement with the selected Strategic Investor, Park Agrotech Limited, to commence operations at the Komenda Sugar Factory.
Park Agrotech Limited is an agroprocessing company based in Ghana which together with its technical partner based in India, have significant expertise in the sugar cultivation and processing industry.
Mr Kyerematen concluded that, he has instructed the Transaction Advisor and Park Agrotech to ensure that the Conditions Precedent to the Concession Agreement and a Road Map for the opening of the factory is finalized by the end of August to enable operational activities commence before the end of this year.
The minister’s answer was in response to a question filed by the MP for Komenda/Edina/Eguafo/Abirim, Dr Samuel Atta Mills on why Komenda Sugar factory is still closed and what has happened to the strategic investor the country was promised.
The Komenda Sugar Factory, which was built at a cost of $35 million from an Indian EXIM Bank facility, was inaugurated by then President John Mahama in May 2016, amid pomp and pageantry but was locked after a few test runs.
The factory was also expected to generate energy for its production activities and produce by-products such as molasses for the alcohol industry.
But many challenges, including the unreliable supply of sugarcane for continuous processing after the preliminary test run, hampered the operations of the company.