NEWS

Parliament Approves USD150 Million Loan For The Transport Sector


Following the Finance Committee’s report presented at the plenary for debate, Parliament has approved a USD150 million loan from the International Development Association (IDA) for roads and other infrastructure in the Transport Sector.

Presenting the report on the floor of the house, the Chairman of the Finance Committee, Hon. Dr. Mark Assibey-Yeboah, indicated that the approval of the loan will help to improve road transport and other life-saving infrastructure in the road sector.

Member of Parliament for Adaklu, Hon. Kwame Agbodza Governs, however, alleged that the government is not paying much attention to the development of roads.

“The present government has not added even one kilometre road to the existing ones. If proposed loans meant for roads are brought before the house by this government, I will vote for its approval.

Activities on the Eastern Corridor Road have been halted under this government. The government must be serious with road construction”. He Lamented.

Finance Committee’s report on the proposed IDA loan

According to the report, the objectives of the project is to support the development of road infrastructure, improved road safety, strengthen the capacity of the sector agencies and foster regional integration.

The project aims at reducing travel time on selected parts of the Classified Road Network in Northern Ghana, promote road safety and strengthen the institutional management of the transport sector.

Under the terms and conditions of the loan, the amount agreed is SDR 110 million, which is equivalent to US$150 million. The loan has a grace period of five years, Payment Period of twenty years and Maturity Period of twenty-five years.

The service Charge per annum is 0.75 percent, Interest Rate on the loan is 1.25 percent per annum and the Grant Element consists of 30.44 percent.

The project is divided into three broad components and would be implemented over a six year period.

Component 1 will support the development of road infrastructure in the Northern part of Ghana. The road from Tamale to Yendi and Tatale will be rehabilitated to improve the road network in the integral part of the Central East-West Corridor.

About 200 kilometres of feeder roads will also be developed in parts of the Brong Ahafo, Northern, Upper East and the Upper West Regions.

Component 1 will also support the establishment of a network-wide Road Asset Management System, an internet connectivity at the Tatale Border Post and support the Axle Load Control Program with equipment for permanent weigh stations.

Component 2 covers activities to be implemented by both the National Road Safety Commission and the Driver and Vehicle Licencing Authority (DVLA).

Component 3 will support an institutional review of the agencies with the aim of restructuring the road and transport sector. It will also involve the implementation and operationalisation of a comprehensive nationwide transport sector monitoring and data management system.

The report again revealed that a Maximum Commitment Charge of 0.5 percent has been waived for the first year 2018 and the board of IDA is empowered to review the waiver year-on-year with a view to continue the waiver or otherwise.

 

Exclusively Newslinegh

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