The finance ministry has signed on to a $101.6 million loan facility for the completion of the Eastern Corridor Road Development Program Phase 1.
AfDB providing $81.67 million of the loan with OPEC providing 20 per cent of it. The facility, which will be refinanced in 25 years forms part of the government’s ‘year of roads agenda’ for 2020. Abena Osei Asare is a deputy finance minister, she’s been breaking down the payment plan.
Deputy Finance Minister Abena Osei Asare said, “The interest for this is 1 per cent per annum. There is a service charge of 0.75 per annum – principal amount and we have 30 years for repayment including a 5-year grace period and 25-year payment period.”
Deputy Minister for Roads and Highway, Anthony Karbo explained the Eastern Corridor road will further deepen economic activity in the catchment area spanning a stretch of 120 km. According to him, the completion of the Eastern Corridor road will take 12 months.
Other lenders for the project were the OPEC Fund for International Development, the Ghanaian government and the Japan International Cooperation Agency (JICA), which was financing a connecting bridge across the Volta River.
The $113.27 million project covers over 60-km of roads, two interchanges and related civil works incorporating community support initiatives to help improve livelihoods in the catchment area.
The project includes rehabilitation of schools and health facilities, construction of markets and agro-processing facilities for livestock, fish, cassava, fruits and cereals, in addition to skills training.
Upon completion, the stretch would be tolled and axle-weighing facilities provided to control overloading.
The President of AfDB, Akinwumi Adesina welcomed the strong collaboration with JICA and OFID and the opportunities for the setting up of Special Agro-Industrial Processing Zones along the Eastern Corridor.
The Project is to be implemented over a five-year period from 2018 to 2022.