The Accra-Tema motorway extension road when completed 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, Finance Minister Ken Ofori-Atta has said.
This is in contrast to the government’s own cancellation of all road tolls in the country as announced and directed by the Minister of roads and highways, Kwesi Amoak Attah, shortly after the 2022 budget was presented to parliament.
MR Ofori-Atta delivering the mid-year budget review before parliament today, Monday, 25 July 2022, in a reversal said the Accra-Tema motorway extension will be tolled amidst jeers from the Minority MPs.
He explained that “Mr. Speaker, 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.
“Site works are 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.
“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 added
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