By Mercy Darko
With an estimated 94,203 kilometers of road networks, Ghana needs about 12 billion dollars to clear maintenance backlogs and pave its roads across the country. However, government is only able to raise funds to cater for 38 percent of total road infrastructure, leaving 72 percent of roads unattended to. It is for this reason the government is advocating Public-Private Partnerships to bridge the gap.
Vice President Mahamudu Bawumia said while government is working to raise more revenue to fund road projects, the support of the private sector through strategic partnerships will go a long way to address the huge financing gap for the sector. Addressing a High-Level Expert Panel Discussion on Closing the Financing Gap in Road Infrastructure Development in Ghana, Dr Bawumia said there is a need to look at a broad base approach on road tolls which can contribute to revenue generation, especially in the urban areas.
The High Level forum seeks to among other things create a platform stakeholders to deliberate on ways to achieve sustainable financing mechanism for Ghana road sector. The forum will also address the persistent challenges in the sector while generating actionable strategies to drive the country’s road infrastructure for the next 50 year and beyond. Vice President Bawumia said Government is determined to close the financing gap stressing that budget funding of roads is not sustainable hence the need to do more to raise fund as there is a huge gap between the demand for roads and financing.
He appealed to the private sector to come on board to build a sustainable road infrastructure network for the country. “Public-Private Partnerships offer a viable solution to bridge the financing gap. By fostering collaboration between the public sector and private investors, we can unlock new funding streams and leverage expertise in project implementation. Successful PPPs have been implemented worldwide, demonstrating their potential to deliver infrastructure projects on time and within budget”, he noted.
Dr Bawumia also underscored the need to strike strategic partnerships. “To foster successful partnerships, it is essential to build strong relationships with construction firms, engineering companies, and technology innovators who can provide both financial support and valuable expertise. Public-private partnerships (PPPs) are vital for sharing the responsibilities and rewards of infrastructure development. Such collaborations often lead to improved quality of infrastructure and can significantly reduce the burden on public finances, allowing for the reinvestment of savings into other essential areas”, he said.
The Vice President also pledged to reduce government’s expenditure by 3 percent. He entreated participants to explore ways to source financing for the sector.
“It is evident that we need to discuss a major paradigm shift in road financing at this technical forum. Some areas you might consider include the following:
-Concessioning of high-volume roads over a period. This could be done on major trunk roads like Accra-Kumasi, Accra-Cape Coast, Accra-Akosombo as well as new ring roads/ expressways around our major urban centres. Congestion pricing which aims to reduce the entry of low-capacity vehicles into central business districts and encourage the use of high-occupancy vehicles. Discussion of the Re-introduction of tolls from 2025 with focus on addressing concerns about equity, affordability and setting realistic tolls”.
Minister of Finance, Dr Mohammed Adam who gave some statistics on funding for the road sector over the last eight years said government spent 10 billion cedis on the road sector from January to June this year.
Minister of Roads and Highways, Francis Asenso Boakye touched on the proposed National Roads Authority and its role when it is established. According to the Minister, the Authority will streamline the management of the Ghana Highway Authority, the Department of Urban Roads and the Department of Feeder Roads.
In a remark, World Country Director, Dr Robert Taliercio O’Brien commended the government for some successes chalked over the years. He however noted that challenges such as delays in the payment of arrears to contractors needs to be addressed.
The forum is spearheaded by the Ghana Highways Authority, heralding its 50th anniversary.
