Ken Ofori-Atta
FINANCE MINISTER Ken Ofori-Atta has indicated that the government would reintroduce the collection of toll on the Accra-Tema Motorway and its extension PPP project covering 27.7 kilometers after the rehabilitation works have been completed.
Presenting the Mid-Year Budget Review to Parliament yesterday, the Finance Ministry said the road toll would be used to pay contractors and provide equity for investors.
He explained that under the Ministry of Roads and Highways (MoRH) 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) is at the procurement stage with site works expected to commence in September 2022.
“The Government of Ghana has 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 with a mandate to deliver a GIIF-led PPP financing solution, where maximum funds are raised from the market, but majority ownership of the project remains with GIIF on behalf of the Ghanaian Government,” he stressed.
Mr. Ofori-Atta noted that the draft Concession Agreement (CA) between GIIF and 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.
He further indicated that 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.
“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,” he explained.
Government scrapped road tolls in the 2022 budget statement and financial policy presented in November 2021.
Mr. Ofori-Atta during the announcement in Parliament said that the decision was taken as a result of heavy traffic, sprawling markets and pollution around the tollbooths.
Railways
The Finance Minister said significant investments continue to be made by the government towards the development of a modern railway network for the country.
“We believe in this because we know that creating an alternative means of transport, especially for goods, will ease the pressures on our roads and future impacts of global crude price hikes on farm produce, for example,” he stated.
He said the government is within target to complete the construction of the new Tema to Mpakadan Railway line by the end of this year, with the project currently about 92 per cent complete.
“The operationalisation of the project is expected to enhance efficiency at the Tema Port and provide the shortest transportation route between the Southern and Northern parts of Ghana,” he added.
Public Sector Workers
The minister asserted that the government has kept faith with public sector workers, intimating, “Not a single public sector employee was laid off as a result of the COVID 19 pandemic.”
“Employees received their full salaries, with front line health workers receiving additional incentives. Since 2017, this Government has employed an additional 295,035 Ghanaians in the public sector, with 2020 being the highest, registering 84,181 new employees.
“In spite of the prevailing global economic upheavals and the resultant fiscal challenges, Government continues to pay salaries of all public sector employees on Government Payroll and has committed to pay a Cost of Living Allowance (COLA) of 15 per cent,” he noted.
“This ensures that public servants are motivated, and public services nationwide continue uninterrupted,” he added.
BY Ernest Kofi Adu