Accra-Kumasi Expressway: The financing model is not new

Recent discussions about the proposed Accra-Kumasi Expressway have led many to believe that the current administration has introduced a novel financing model for Ghana's expressway projects, one that relies on domestic funds rather than external loans. However, a closer examination of the facts reveals that this financing model is not entirely new.

The same framework was previously introduced and successfully utilized during the second term of Nana Addo Dankwa Akufo-Addo's administration, under the leadership of then Finance Minister. The original framework involved the creation of a Special Purpose Vehicle (SPV) under the Ghana Infrastructure Investment Fund (GIIF) to execute the Accra-Tema Motorway project.

In light of this, it is crucial to have a clear and accurate understanding of whether the current proposal is simply a continuation, duplication, or repackaging of an existing framework. The public has the right to know the current status of the original structure, the reasons behind the ATEL's non-utilization, and why the current administration is presenting the same financing concept as a new initiative.

The Ministry of Finance worked with the Ministry of Roads and Highways to establish the financing framework for highway infrastructure during the previous administration. This collaboration was instrumental in establishing the ATEL as an SPV under GIIF, with a dedicated CEO and board. A dedicated account was also established at the Bank of Ghana, funded mainly through the Annual Budget Funding Amount derived from Ghana's petroleum revenue.

No external borrowing was utilized in the financing of the Accra-Tema Motorway project. The SPV was expected to execute the first phase of the project and subsequently offload it to domestic pension funds, which would then raise new domestic funds for further expressway projects across the country. The motorway was also intended to be tolled, with a new law anticipated once the road was completed.

Despite this established framework, progress on the motorway project slowed following the change in government and the assumption of office by a new Minister for Finance under the NDC. Now, the Accra-Kumasi Expressway is being presented under a similar structure, with a new CEO appointed and the military clearing the right of way.

However, there is no publicly identified board for the project. Additionally, a toll has reportedly been announced for the Accra-Kumasi Expressway without parliamentary approval, estimated at US$20, even though the contract has not yet been awarded. The assertions that this financing arrangement is new and unique are misleading, as the same basic financing model was already developed and successfully applied under the original ATEL framework during the previous administration.

The central question is whether citizens are receiving an accurate account of the development of this financing model and its previous implementation. The truth about Ghana's expressway financing model must be established through the available records, and it is essential for national development that the citizens are given honest and transparent information.