Ghana’s Finance Minister, Mr. Ken Ofori-Atta, has hinted that the government will reintroduce the tolling of all new roads to be constructed under a Public-Private Partnership (PPP) arrangement.
According to him, the roads—most of which will be by PPP—will have users pay while travelling on them in order to finance the cost of the road. The Finance Minister gave the hint on Monday, July 25, 2022, when he delivered the mid-year budget statement on the floor of Parliament.
“ 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. All new roads of this nature will be tolled. ” Mr Ofori-Atta emphasised that the new projects must be “self-financing” and that can only be attained if the roads are tolled.
The Minister did not mince words by indicating that the tolls will also be used to pay contractors and provide equity for investors. Tolls on the country’s public roads were abolished in the 2022 budget statement and the government’s financial policy was presented on Wednesday, November 17, 2021.
Mr Ofori-Atta had told Parliament then that the decision was taken as a result of heavy traffic, sprawling markets and pollution around the tollbooths.
