Parliament passes concession agreement for Accra-Kumasi Expressway

Parliament has approved a concession agreement between the government and the Accra-Kumasi Expressway Limited as the concessionaire for the construction of the Accra-Kumasi Expressway , a flagship project under the Big Push.

The Accra-Kumasi Expressway Project is a proposed multi-lane, access-controlled expressway linking Accra in the Greater Accra Region to Kumasi in the Ashanti Region.

The existing highway is one of the busiest highways connecting the national capital of Accra to the business city of Kumasi.

The two cities are presently linked by the Accra Kumasi highways with a vehicular traffic of over 10,000 per day; yet, it has long become a nightmare for commuters and, tragically, a death trap.

Despite serving as a critical artery, connecting Accra with the Ashanti Region, the Bono Regions, and all five northern regions, the current form of the road is riddled with potholes and uneven surfaces and lacks adequate lighting systems, making it more of a death trap.

This is one of the reasons the government is embarking on this ambitious project to improve travel in the corridor and also improve the country’s road infrastructure and facilitate economic activity between the two cities.

The government intends to construct a six-lane dual-carriage expressway connecting Accra and Kumasi through a concession agreement with Accra-Kumasi Expressway Ltd., a special-purpose vehicle (SPV) incorporated for the purpose.

Some members from the Minority caucus raised concerns about the new project, expressing fear that the old highway project, which needs adjustment, could be abandoned.

Commenting on the issue, MP for Ofoase/Ayirebi, Kojo Oppong Nkrumah, observed that there has not been any feasibility study yet on the project.

“Contrary to the impressions created that this project is ready to go, actually, even the feasibility of this project has not been done. My caution to the government is to manage the risks pretty well,” he noted.

The ranking member on the Economy and Development committee also stated that the claim that financing for the project is ringfenced is false.

“If the old highway and the new project are going to draw from the government funds, especially now that the revenues haven’t hit the projections, let’s be careful so we don’t have both hanging,” he said.

But the Roads and Highways Minister, Kwame Governs Agbodza, denied some of the assertions and indicated the Big Push is such an unprecedented project that it must be supported.

The concessionaire

The Accra-Kumasi Expressway is to be executed under a concession agreement between the Republic of Ghana, represented by the Ministry of Roads and Highways, as the contracting authority, and Accra-Kumasi Expressway Limited as the concessionaire.

The Accra-Kumasi Expressway Ltd is a wholly-owned Special Purpose Vehicle (SPV) incorporated by the Ghana Infrastructure Investment Fund (GIIF), with representation of the Ministry of Roads and Highways, the Ministry of Finance and the Attorney General’s Department serving on the Board.

The SPV is wholly funded through budgetary allocation from the Government of Ghana as part of the BIG PUSH initiative.