Ken Ofori Atta
Government has reiterated its commitment to embarking on an integrated infrastructural development programme across the country to enhance the movement of goods and people and create jobs and prosperity.
According to Government, that will ensure value for money for Ghana as well as position Ghana as the transportation, energy and logistics hub in the region.
Ken Ofori-Atta, Finance Minister, who disclosed this yesterday in Parliament, said, “To ensure efficient management of infrastructure, we will soon submit a bill to set up the Ghana Asset Management Corporation. Mr. Speaker, with your permission I will like to inform Ghanaians on what we have done so far on infrastructure and the massive investments commencing in 2019. In 2019, we will invest massively in the development of road and infrastructure, from a variety funding sources.
“The projects would be sited in Ashanti, Western, Central, Brong Ahafo and Eastern regions. Also some would be carried out in the Northern, Upper East and Upper West, Volta and Greater Accra regions.
Also next year, government, in partnership with the private sector through PPP arrangements, would undertake various projects, including Accra–Takoradi Highway Dualisation, Accra – Tema Motorway and Accra – Kumasi Highway Dualisation.
Railways
The finance Minister revealed that the rehabilitation of the existing 56 kilometer narrow gauge line from Kojokrom to Tarkwa this year through Nsuta Corridor to restore passenger rail and freight services would be completed in 2019.
“Work also commenced on rehabilitation works on the 70.8km narrow gauge sections of the Eastern Railway Line from Accra to Nsawam and Accra to Tema. The Achimota to Tema section is 90 percent complete and Achimota to Accra Central and Achimota to Nsawam will be completed by end of 2018. Rehabilitation will continue to Koforidua in 2019.”
He added that the feasibility studies for the proposed 596 kilometer Greenfield Railway Line from Kumasi to Paga, popularly known as the Central Spine, had been undertaken and that Phase 1 which spanned Kumasi to Buipe would commence in 2019.
Others to be pursued in 2019 include a rail link on BOT basis between the Tema Port and Ouagadougou, Burkina Faso; the development of Metro / Light Rail Transit Systems in Accra and Kumasi such as the recently signed Accra Sky Train project; the Trans-ECOWAS line from Aflao through Cape Coast to Elubo and the re-development of the Central Line from Kotoku in the Greater Accra Region to Huni Valley in the Western Region.
“The Railway Location Workshop, also at Essikado, is being modernized and equipped, and will be completed in 2019 to become a one-stop workshop to serve the railway, mining, petroleum and agricultural industries. “We are confident, 2019 will witness the re-launch of the railway system in Ghana.”
Gas revenue exclusion
“The Ministry of Finance has also proposed to Parliament to allow it to exclude gas revenues to the tune of US$181.80 million from the projected petroleum revenues for 2019, as we devise ways of getting VRA to pay for the gas supplied it by Ghana Gas.
Furthermore, as a measure to minimise the amount of gas produced in the SGN Field for power production, government has decided to postpone the extraction of its share of the gas resource (Royalties, and Carried and Participating Interest (CAPI), until such a time that we line up off takers to consume the gas in-year.
“These are prudential measures and should not be misconstrued to mean that the Ministry will not be pursuing the VRA’s gas bills, as required by the PRMA.
“If this House grants us this request, the projected petroleum revenue for 2019 will amount to US$1.1 billion. This is made up of Royalties (US$227.10 million), Carried and Participating Interest (US$602.80 million), Corporate Income Tax (US$249.60 million) and Surface Rentals (US$1.10 million).
“Of this amount, US$404.90 million will be ceded to the NOC for its Equity Financing Cost (US$320.10 million) and share of the Net Carried and Participating Interest (US$84.80 million), US$473.0 million allocated to the Annual Budget Funding Amount (ABFA), while the GPFs receive US$202.70 million. The GPFs’ receipts will be distributed between the Ghana Stabilization Fund (US$141.90 million) and the Ghana Heritage Fund (US$60.80 million).”
BY Samuel Boadi