Komenda Sugar Factory: secure tax incentive for strategic investor delay process – PwC

Price Waterhouse Coopers (PwC), the government’s transaction advisers, on the Komenda sugar plant, explained the delay in reaching the agreement on preconditions to secure tax incentives for the strategic investor.

Speaking on Awesome Morning Show from Joy FM PwC Country Senior Partner Vish Ashiagbor said on Thursday that although the transaction deadline has been set for the end of August, procedures involved in acquiring tax incentives have delayed processes. .

“There is no problem. What we are currently working on is the tax incentives law that will accompany the import of raw sugar and also grant machinery and other inputs that will enable the factory. to operate efficiently.

“So in summary this is the main issue that we are working on, so that we can try to come to an agreement with the investor and things can take off from there. [This is] because, as you probably know, the granting of tax incentives is not something that just anyone [can do]. There is a process to follow, ”he told host Winston Amoah.

Trade and Industry Minister Alan Kyerematen told parliament in July that plans were underway to ensure the operationalization of the Komenda sugar factory before the end of 2021.

According to him, the transaction advisor has been asked to ensure that the roadmap for the opening of the plant is finalized by the end of August 2021.

“I tasked the transaction advisor to ensure that the condition precedent to the concession contract and the roadmap for the opening of the plant are finalized by the end of August 2021 to enable the operational activities of the plant to start before the end of the year. “said Alan Kyerematen.

However, a visit from JoyNews‘Joojo Cobbinah discovered that the plant is currently inactive and is rusting.

The Komenda Sugar Factory was built in 1964 but disappeared around 30 years ago due to technical difficulties and poor management.

When it was returned to service in 2016 by former president John Mahama, 7,300 jobs were expected to be created when the plant is fully operational.

But the $ 36.5 million loan sugar factory does not produce sugar. It is inactive and is currently rusting with parts of the roof worn and torn since the facility was closed in July 2016 after some testing.

It was scheduled to reopen for full production in October 2016, but never did.