Accra, July 25, GNA-The Finance Minister, Mr Ken Ofori-Atta, says the Government will reintroduce toll on the Accra-Tema Motorway after its expansion.
That, he said, was to offset life cost of the infrastructure as well as pay lenders and provide a return for equity investors.
Delivering the 2022 Mid-Year Budget Review of the Government in Parliament, in Accra, on Monday, the Finance Minister explained that Government, under the Ministry of Roads and Highways Public-Private Partnership (PPP) programme for road infrastructure, the Design, Build, Finance, Operate, and Maintain (DBFOM) Accra–Tema Motorway and Extension PPP Project – 27.7km stretch-was at the procurement stage with site works expected to commence in September 2022.
He said the Government had also made a strategic decision in line with the Public Private Partnership Act, 2020 (Act 1039) to procure the Accra-Tema Motorway and Extensions Project through GIIF to deliver a GIIF-led PPP financing solution by raising maximum funds from the market.
“The draft Concession Agreement (CA) between GIIF and Ministry of Roads and Highways (MoRH) is currently under review by GIIF, MoRH, the Office of the Attorney-General and Ministry of Finance. When completed, the CA is expected to be approved by the PPP Committee, Cabinet and Parliament,” said Mr Ofori-Atta.
He added that: “The completed road will be tolled to recover the whole life cost of the completed infrastructure as well as pay lenders and provide a return for equity investors. The Government of Ghana shall provide funding through GIIF to take equity in the Special Purpose Vehicle to be created by GIIF for the project.”
Government, in November, 2021 announced the seizure of road tolls across all roads and bridges in the country.
Mr Ofori-Atta also assured of Government’s determination to fix all roads in the country despite the challenges in raising revenue, adding that Government’s “Year of Roads” programme was very much on course.
For instance, he said Phase I of Government’s Agreement with the Sinohydro Corporation Limited comprising Engineering, Procurement and Construction (EPC) contracts for a 442km of roads and two interchanges had made significant progress.
These include the Tamale Interchange Project completed and commissioned; the PTC Roundabout Interchange Project currently at 35 per cent completion; upgrading of selected feeder roads in Ashanti and Western regions also completed; and the Sunyani Inner City Road works which are at 63 per cent completion.
Mr Ofori-Atta added that other key road and bridge projects were also progressing steadily.
Giving an update on their current statuses, the Finance Minister disclosed that the La Beach Road Project (Lots 1 & 2), which included a 3-tier interchange at Nungua, were 34 per cent and 50 per cent complete respectively as of June 2022; phase II of the Obetsebi Lamptey Circle Interchange and the flyover on the Accra-Tema Motorway from the Flower Pot (Spintex road) were 57 and 30 per cent complete respectively as of June 2022.
He added that the Kumasi-Lake Roads and Drainage Extension project, extension of the existing Aboabo drain, and construction of the Chirapatere Bus Terminal was at 92 per cent as at the end of June 2022 and that the upgrading of Salaga – Ekumdipe – Kpandai Road was at 70 per cent completion.
Source: Ghana News Agency