Kwasi Amoako Atta
PARLIAMENT HAS approved two sets of loans totalling €156.4 million from the Deutsche Bank S.A.E. to finance the design and construction of Phase I of the Suame Interchange and Ancillary Works Project in Kumasi, the Ashanti Regional capital.
The loan is made up of €135,396,518.38 Buy’s Credit Agreement (supported by a CESCE insurance premium) and €21 million Commercial Facility Agreement, and the two agreements were presented to Parliament for consideration on July 19, 2022 by the Deputy Minister of Finance, Abena Osei Asare, on behalf of the government.
The government said the CESCE-backed facility has a 10-year repayment term with an interest rate of 6M Euribor + 1.35% per annum and a two-year moratorium, while the Tied Commercial Facility has a five-year repayment term with an interest rate at 6M Euribor +5.75% per annum and 0.5-year moratorium.
Background
The government said it recognises the importance of good road infrastructure as a critical facilitator for rapid socio-economic development of the country through the improvement of accesses, reduction in travel times, congestion, vehicle operating costs and accidents.
To ensure the operational efficiency of road transport in moving persons, goods and services both within the country and with neighbouring countries, the government has already implemented some major road infrastructure projects and continues to source funding for the implementation of additional critical road projects in line with the its infrastructure development agenda.
According to the government, Kumasi is the second largest city in Ghana with a population of 2.8 million as of 2021, and the city is an important hub of economic activity for the Ashanti Region and the country at large.
“The efficient movement of people and goods is essential to its vitality. The medium to long term transport development plan for Kumasi suggests that a combination of highway and public transport developments will have significant benefits to the city of Kumasi,” the government stated.
It said the Suame roundabout is a five-legged intersection, which links the PV Obeng road, Mampong road, Offinso road, Western bypass and Kejetia road.
The Suame roundabout has been identified as a major bottleneck in the road transportation system in Kumasi because all the five legs of the intersection are dual carriageways, two lanes in each direction, with asphaltic surfaces.
The Level of Service (LOS) of the roundabout is “F” during the peak periods, the report of the Finance Committee indicated.
It disclosed that the Ministry of Roads and Highways intended to undertake the Design and Construction of Suame Interchange and Ancillary Works Project (Phase 1), as part of the efforts by the government to enhance road infrastructure in the country.
Objectives
The report said the objective of the project is to improve travel time and reduce waiting times within the Kumasi Metropolis, with consequent reduction in poverty and enhanced development in Ghana.
It is envisaged that the project will improve traffic circulation by enhancing the capacity of the interchange and removing bottlenecks as well as improving the movement of people, goods and services to support socio-economic development of the inhabitants of Kumasi in particular and the country as a whole.
Scope of Works
The Suame Interchange is made up of a 4-tier interchange with a roundabout at the ground level which will cater for left and U-turn movements as the first tier.
The second tier will be a through movement from Kejetia towards Offinso, and also cater for movement from Kejetia to Mampong, while the third tier will provide for movement from PV Obeng road towards Western bypass, and PV Obeng road towards Offinso road.
The fourth-tier level is for movement from Offinso road to PV Obeng road, the report revealed, and added that the interchange will be a composite of steel and concrete structure. The beams will be steel box girders.
BY Ernest Kofi Adu, Parliament House