Parliament approves $750m loan agreement for infrastructural projects

 Ghana’s Parliament has approved the $750million loan agreement needed by government to complete the infrastructural projects in the 2022 budget.


The amount is part of the $1 billion dollar the government is seeking.

The loan was approved after the Chairman of the Finance Committee, Kwaku Kwarteng presented the motion to the House for its approval.

The remaining $250million was rejected by the Minority for lack of clarity. The Ranking Member on the roads and transport committee Kwame Governs Agbodza asked the Finance Minister and the Roads Ministry to come clear on the components of the loan before the approval.

Mr. Speaker having carefully examined the agreement which forms part of government’s programme aimed at raising funds for infrastructural projects in the 2022 budget, I will accordingly urge this House to approve this facility in order that Ghanaians may reap the benefits the facility will bring,” Mr. Kwarteng said.

On their part, the Minority said: “we have noticed some projects being duplicated in the agreement. We do not believe this is right and we will not encourage it. We want some clarifications...

We only want to get things clearer. The information we have gathered so far is too limited,” Mr Agbodza told journalists in Parliament on Wednesday July 20.

Also, the Ranking Member on the Finance Committee, Cassiel Ato Forson had cause to complain about the country’s debt levels.

He opined that all the tax revenues accrued from the first quarter of the year were consumed by interest payment and amortization for the same period.

According to him, the ¢12.9 billion that was raised in the period could not offset interest payments and amortization payments of the same period.

Mr. Speaker let me put on record that I had serious concerns with Ghana’s debt sustainability issues. Mr. Speaker currently, per the data from the Ministry of Finance published on its website it is clear that in the first quarter, Ghana recorded a total tax revenue of GHS12.9 billion. Of this amount, debt service obligations alone made up of interest payment and amortization GHS13.9 billion.”

Meanwhile, below is the list of projects, government has informed Parliament that the $750 million will be used for:

  1. Suame Roads 
  2. Sofoline interchange 
  3. Flower pot interchange 
  4. All African Games infrastructure
  5. Source : Pulse.com.gh

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