The government has revealed that the collection of tolls will soon be re-introduced on the Tema Motorway under the Ministry of Roads and Highways (MoRH) Public-Private Partnership (PPP).
Presenting the Mid-year Budget Review on Monday, 25th July 2022, Ken Ofori-Atta, the Finance Minister said a draft Concession Agreement (CA) between GIIF and the Ministry of Roads and Highways (MoRH) is currently under review by 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,” he disclosed.
Mr Ken Ofori-Atta explained that the Government of Ghana will give funding through GIIF to take equity in the Special Purpose Vehicle to be created by GIIF for the project.
“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.”
