The Ghana Infrastructure Fund Committee has presented its maiden policy document to President John Dramani Mahama, spelling out how the funds should be mobilized, regulated and disbursed.
Leader of the committee, Ato Ahwoi says the Draft bill should be in Parliament in April and hopefully be passed by June.
The Ghana Infrastructure Fund was announced by President Mahama in his state of the nation address this year and the committee formed thereafter to set out modalities.
Explaining the framework, Ato Awhoi said among others, the recently passed 2.5 percent Value Added Tax increase will be one of the sources of funding.
“We also know from the budget that we’re going to get 25 percent of the annual budget funding amount which is applied to amortization and direct infrastructure expenditure.
It will also accrue monies made from disposal of state assets, grants and donations, investments and any other monies determined by the Finance Minister.
These should be paid within at least 2 weeks after each month.
10 Percent of the amount will be set aside for what he called impact projects.
“By impact project we mean funds which necessarily will not give the rate of returns that we are looking at but which are necessary for the development of the country and we also lead to the re-election of the political party in power…we believe that health should be part of the impact projects where cheaper funds may be used and less stringent measures may be applied to them because health is everything.”
The fund according to the committee should focus on infrastructure that is commercial in nature to rake in returns.
“For example if we invest in a road, if we were to do a six lane road from Accra, through Kumasi, through Tamale from Bolga to Paga, six lane; we should expect that this road will pay for itself within a period of between 15 and 25 years. This road can only pay for itself if Ghanaians understand and the press allow Ghanaians to understand that people should pay tolls on those roads.
He mentioned the areas to be covered under the fund
“We are talking of energy, water and waste services, transportation, telecommunications, Oil and gas infrastructure, Agricultural infrastructure, mining infrastructure, educational infrastructure, housing, roads and highways , the manufacturing and construction of goods ,equipments, plants and buildings and then the infrastructure components of industrial projects”
President Mahama said this will give the country a better control of its debt portfolio.
"It is going to give us a better debt sustainability than we have had in the past. I believe this development is a very positive one for this country, and we are going to go by the roadmap that you have indicated in the report. We were bent on approving it in cabinet today…Cabinet has been postponed to Monday…it is going to give the members of cabinet the opportunity to go through the report over the weekend and be able to make a meaningful discussion of the report when cabinet takes it on Monday. As soon as that is done, we shall arrange for it to be tabled in Parliament.
It is expected to be passed in Parliament as a body independently regulated by a board of directors and an Advisory Council.
It will also see the recruitment of staff to man it.
Latest Stories
-
Fitch affirms ETI at B-; Outlook stable
24 mins -
Bawumia meets Pope Francis
32 mins -
Former Bibiani GoldStars midfielder Frank Adjei Jr continues fine form in Swedish League
37 mins -
J.B. Dankwah Adu’s Murder: Court orders Sexy Dondon to open his defence
39 mins -
Marrakech 2024: Five para-athletes to represent Ghana in WPA Grand Prix in Morocco
51 mins -
U.S Senate approves bill to ban TikTok
59 mins -
T-Pain involved in hit-and-run, warns culprit he’ll find them
1 hour -
Cedi hits GH¢14.00 to a dollar; depreciates 12.08%
1 hour -
Major portions of Kasoa-Winneba road to open to traffic in 8 months
1 hour -
Kwadaso onion traders reject new location, express fear over future eviction
1 hour -
Pensions: 81% of pensioners had benefit shortfalls in 2020 – Abdallah Mashud
2 hours -
All Regional Games: Torch relay ceremony hits Oti Region
2 hours -
CSO calls for immediate removal of COCOBOD CEO from office
2 hours -
How a young female geologist’s thesis is paving the way for Ghana’s Green Mineral Future 5 decades later
2 hours -
Pensions: The last time government paid Tier-2 funds was in June 2023 – Angel Carbonu
2 hours