Extractive revenue volatility threatens GH₵30bn expressway dream; contingency measures needed – CIPAC
According to CIPAC, the concern is about ensuring that the financing arrangements for such a long-term investment remain robust when the economic assumptions supporting them change.
The Chartered Institute of Project Analysts and Consultants (CIPAC) has expressed concerns over the funding stability of Ghana's ambitious GH₵30 billion Big Push programme, particularly the Accra–Kumasi Expressway. While acknowledging the project's significance in enhancing connectivity and economic growth, CIPAC warned that the financing arrangements must be resilient enough to withstand fluctuations in revenues from the extractive sector.
The institute emphasized that such long-term investments need robust financial risk management, specifically when a significant portion of the fiscal space is tied to commodities whose prices and production levels can be unpredictable. CIPAC recommended establishing a contingency reserve to protect the project during periods of extractive-sector revenue volatility.
This reserve would be funded by surplus revenues during high-income periods and accessed during low-income periods to maintain project commitments. The institute urged the government to adopt realistic revenue assumptions in budget planning and procurement to ensure transparency and accountability.
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