Finance Minister, Ken Ofori-Atta, has revealed that the construction of the Tema to Mpakadan Railway line is 92 percent complete.
According to him, significant investments continue to be made by government towards the development of a modern railway network. He indicated that he believes in this because creating an “alternative means of transport, especially for goods, will ease the pressures” on the country’s roads.
Addressing parliament today on the mid-year budget, Mr Ofori-Atta noted that the construction of rail lines in the country will equally affect positively the “future impacts of global crude price hikes” on farm produce due to the swift nature of transporting them.
“Government is within target to complete the construction of the new Tema to Mpakadan Railway line by the end of this year. The project is currently about 92 percent 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.”
Ken Ofori-Atta
Mr Ofori-Atta stated that inspite of the revenue-mobilising challenges, President Akufo-Addo is determined to fix the roads and the “Year of Roads” programme by government is very much on course. He emphasized that Phase I of government’s agreement with the Sinohydro Corporation Limited, which comprises Engineering, Procurement and Construction Contracts for 442 km of roads and two interchanges have gained significant progress.
The finance minister expressed that this includes the Tamale Interchange Project which has been completed and commissioned and the PTC Roundabout Interchange Project which is at 35 percent completion.
“Upgrading of selected Feeder Roads in Ashanti and Western Regions completed with a lot more to follow and Sunyani Inner City Roadworks are at 63 percent completion.”
Ken Ofori-Atta
The finance minister highlighted that other key road and bridge projects are also progressing steadily such as the La Beach Road Project (Lots 1 & 2), which includes a 3-tier interchange at Nungua. Mr Ofori-Atta noted that the interchange is “34 percent and 50 percent complete respectively” as at June 2022.
“The Phase II of the Obetsebi Lamptey Circle Interchange and the flyover on the Accra-Tema Motorway from the Flower Pot (Spintex road) are 57 percent and 30 percent complete respectively as at June 2022. The Kumasi-Lake Roads and Drainage Extension project, extension of the existing Aboabo drain, and construction of the Chirapatere Bus Terminal is at 92 percent as at end June 2022.”
Ken Ofori-Atta
Completion of road projects in the country
Mr Ofori-Atta opined that the upgrading of the Salaga -Ekumdipe -Kpandai Road is 70 percent completed whiles the partial Reconstruction of Bawjiase-Adeiso Road -Lot 1 is at 98 percent completion. He explained that “work on the construction of 50 prefabricated bridges to improve connectivity within areas cut off by waterways in all 16 regions have achieved progress of about 80 percent”.
Commenting on road financing, the finance minister noted that under the Ministry of Roads and Highways 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. He opined that 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.”
Ken Ofori-Atta
The draft Concession Agreement (CA) between GIIF and MoRH, Mr Ofori-Atta noted, is currently under review by GIIF, the ministry of roads and highway, the Office of the Attorney-General and Ministry of Finance. He expressed that when completed, the Concession Agreement 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.”
Ken Ofori-Atta
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