Vice President of IMANI Africa, Bright Simons, has highlighted the pivotal role of the Engineering, Procurement and Construction (EPC) contract in the structuring of a recent mining agreement involving the Ghanaian government and private partners.
During a hard-hitting appearance on JoyNews’ Newsfile, Mr Simons noted that the underlying objective of the parties involved is twofold: to settle existing liabilities and to secure new financing to further develop the mine.
“It’s very clear that the intent of the parties is to pay a consideration that clears existing liabilities and, going forward, raise financing to develop the mine,” he stated.
He further explained that the vesting schedule of shares in the project’s special purpose vehicle, Engineers & Planners (E&P), is inextricably linked to the EPC contract, stressing that the entire deal hinges on it.
“The vesting schedule of the shares in E&P is tied to the EPC contract, which is fundamental to the agreement,” Simons explained. “The EPC contract is so fundamental that without entering into the EPC agreement, you cannot have an agreement of this nature consummated.”