Naagyei 90.3 Fm Agyapa
Minister of Finance Ken Ofori-Atta has disclosed government’s plan to raise maximum funds to carry through the rehabilitation and extension of the Tema Motorway.
According to him, pursuant to Public Private Partnership Act, 2020 (Act 1039) government will institute a concession agreement between the Ghana Infrastructure Investment Fund (GIIF) and the Ministry of Roads and Highways for the project.
Presenting the Mid-Year Budget Review in Parliament on Monday, July, 25, 2022, Mr. Ofori-Atta stated that the motorway will be tolled when the project is completed.
“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,” Ken Ofori Atta said.
Though the government has scrapped road tolls, the Finance Minister disclosed that all new roads that will be constructed under such concession agreements will be tolled to raise revenue.
“All new roads of this nature will be tolled,” Ken Ofori Atta emphasized.
Giving details of how far the government has gone with drawing the contract, the Minister said a draft concession agreement between the Ministry of Roads and Transport and GIIF is being reviewed by both sides as well as the Office of the Attorney-General and the Ministry of Finance.
“When completed, the concession agreement is expected to be approved by the PPP Committee, Cabinet and Parliament,” he added.
Finance Minister Ken Ofori Atta on November 17, 2021, during the Presentation of the 2022 Budget announced the government’s decision to abolish tolls on all tolled roads across the country.
“Government has abolished all tolls on public roads and bridges. This takes effect immediately after the Budget is approved,” the Minister said.
