Africa-Press – South-Sudan. The Government of South Sudan has confirmed a 25-year agreement with the international company Shamrock to implement a $2 billion road construction project in the Equatoria and Bahr el Ghazal regions.
Under the agreement, Shamrock will construct over 1,000 kilometers of asphalt roads while carrying out gold mining operations in South Sudan.
“Shamrock will have a 65% share, while the government will hold 35%. Of Shamrock’s 65%, five percent will be allocated as compensation for communities affected by the project, leaving the company with 60%,” Ateny said
The Minister of Information and Telecommunication, Ateny Wek Ateny, explained the shareholding arrangement, adding that the government will retain ownership of all project assets at the end of the contract period.
“Over time, the government’s share will increase as Shamrock’s share decreases. Three to four years before the end of the 25-year contract, the government will fully own the gold concession.”
Last week, the Council of Ministers announced approval of a 2 billion budget to implement the 1,030 km road project in Bahr el Ghazal and Equatoria, which will be primarily funded from income generated by gold mining.
“Much of the gold in South Sudan is in Equatoria. Now, with the concession granted, a map of the areas will be released. Currently, these are technical details that the Ministry has to work out with Shamrock Group. Once finalized, they will mark the areas from which gold will be extracted,” Ateny explained.
He also noted that the Ministry of Mining has been directed to finalize other technical arrangements to facilitate the start of the project.
The announcement has sparked public debate, with some citizens expressing doubts about the government’s ability to successfully implement the initiative.
Source: Eye Radio
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