Finance Minister Ken Ofori-Atta has announced the reintroduction of road tolls in the country by the government .
According to him, the construction by the government will be in partnership with investors.
Delivering the mid-year budget review on Monday, July 25, 2022, on the floor of Parliament, Ken Ofori-Atta said the new roads will be tolled in order for the government to be able to pay the investors.
He added that the new projects must be “self-financing” and that can only be attained if the roads are tolled.
“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,” he informed parliament on Monday.
Mr Ofori-Atta noted that the new strategy would help the government recover the cost of completed roads and pay lenders and investors.
“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 noted.
Ken Ofori-Atta on November 17, 2021, delivering the 2022 Budget Statement announced the government’s decision to wash away the collection of road tolls on our roads.
According to him, the decision was as a result of heavy traffic, sprawling markets and pollution around the tollbooths.