Former Trade and Industry Minister and United Party (UP) leader Alan Kwadwo Kyerematen has proposed private sector financing for the Accra-Kumasi Expressway. The proposed $4 billion project could be structured to attract private capital, particularly where investors can recover their investment through toll revenues. This approach would free up government resources for other infrastructure needs.
Speaking at a public lecture at the British Council in Accra, Mr. Kyerematen questioned the decision to use public funds to finance the entire project. He argued that commercially viable infrastructure projects should be financed by the private sector. The expressway, once constructed, can pay for itself through toll revenues.
Mr. Kyerematen suggested that the government could allow private investors to finance, construct, and operate the road under an arrangement that would enable them to recover their investment over an agreed period. This approach would enable the government to free up resources for other pressing infrastructure needs, including roads within communities across Ghana.
The proposed Accra-Kumasi Expressway is 175.6 kilometers long and is expected to be completed by 2028. President John Dramani Mahama announced on September 14 that $2 billion had been secured for the project and placed in a dedicated account at the Bank of Ghana. The funds were sourced from taxpayers, and the project would not be financed through borrowing.
Finance Minister Dr. Cassiel Ato Forson had earlier stated that $1.7 billion had been secured, and the government expected the full funding requirement to be available by the end of 2026, also without borrowing. The government's current model envisages the expressway generating revenue after completion to enable the state to recover taxpayers' investment within the concession period.
The Chief Executive Officer of Accra-Kumasi Expressway Limited, Francis Ahlidza, stated that the road would be operated as a commercial asset to enable the government to recover the taxpayers' investment within the concession period. Economic analysis is being undertaken, with the expectation that the investment could be recovered over a 50-year period while generating additional revenue for the expansion of the road network.
Mr. Kyerematen's proposal centers on whether the commercial potential of the expressway should be used to attract private capital from the outset rather than requiring the state to provide the initial financing. He suggested that greater use of private capital should form part of a broader economic transformation strategy in which the government creates the policy and regulatory environment while commercially viable projects attract private investment.
Key points
- Alan Kyerematen proposes private sector financing for the $4 billion Accra-Kumasi Expressway.
- The proposed expressway is 175.6 kilometers long and expected to be completed by 2028.
- The project could be financed through a public-private partnership model.
