News:
First Deputy Speaker
July 20, 2022
Seven Hundred and Fifty Million United States Dollars ($750,000,000.00) has been approved to Finance Capital and Growth Related Expenditures in the 2022 Budget. Parliament on Wednesday, July 20, 2022 approve the loan facility agreement between the Government of the Republic of Ghana (Represented by the Ministry of Finance), and African Export-Import BanK (Afreximbank) in accordance Article 181 of the Constitution, Section 56 of the Public Financial Management Act, 2016 (Act 921) and Order 169 of the Standing Orders of the Parliament of Ghana.
The US$750 million Afrexim Facility would be used to finance the following projects;
• Ofankor-Nsawam Road – 200,000,000
• Ejisu – Konongo Road – 79,000,000
• Completion of Nsawam Apedwa Road Project – 10,000,000
• Suame Interchange and Local Road Network project – 47,000,000
• Completion of Flower Pot Interchange, Legon–Accra – 35,000,000
• Completion of Sofoline Interchanee – 35,000,000
• Construction of Kwabenya-Peduase Road Project – 10,000,000
• Completion of Eastern Corridor Lots 5 and 6 – 70,000,000
• Completion of Enkyikrom-Adawso Road Project – 98,000.000
• Purchase of Rolling Stock and Spare part – 30,000,000
• Construction of Stadia Infrastructure for all African Games – 140,000,000
Chairman of the Finance Committee, Kwaku Kwarteng presenting the Committee’s report for approval indicated that aside the loan being used to finance critical infrastructure projects in the 2022 budget, the “approval of the facility will also enable government meet its revenue projections in the budget and support government’s liability management and ensure exchange rate stability”.
The Finance Committee report asserts that the arrangement for this facility has become necessary because of the decision by Government not to use the capital market to raise financing until market conditions improve.
“Additionally, the increasing withdrawal of non-resident investors in Ghana’s domestic bond market with its implications for the level of reserves of the Bank of Grana and foreign exchange management generally requires the injection of additional foreign currency to shore-up the country’s reserve to enable it meet obligations when they fall due”.
Ghanamps.com