News:
July 26, 2022
Less than a year since road toll collection was abolished in the country, users of the Accra-Tema motorway are to brace themselves to start paying road tolls once again after the completion of expansion works on the road. The Finance Minister Mr. Ken Ofori Atta disclosed this during the Mid-Year Budget Review in parliament on Monday, July 25, 2022. He said the decision to toll the road is to help recover the whole life cost of the completed infrastructure as well as pay lenders and provide a return for equity investors.
Mr ofori Atta speaking on Road Financing said 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. Site works are expected to commence in September 2022.
He said 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.
“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. 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” he stated.
Road toll collection was abolished last year during the presentation of the 2022 Budget Statement with the minority accusing government of throwing good money away that could help in fiscal consolidation.
Ghanamps.com