The Transport Ministry insists the establishment of a new national airline will go ahead as planned despite the pullout of the World Bank who were partially funding the project.
[contextly_sidebar id=”knpu7AVuhZsR7QyWrM1ZHSeqtE7EdPvC”]The World Bank has withdrawn its 30 million dollar support for the establishment of the new national airline under a Public Private Partnership (PPP) arrangement.
Citi Business News has gathered an initial pre-feasibility report submitted to the World Bank from the transactional advisors Price Waterhouse Coopers (PWC) for review and approval came back with the World bank indicating it will not continue funding the process, because the model contained in the report was more commercial than the initial Public Private Partnership arrangement agreed upon.
Speaking to Citi Business News Chief Director of the Ministry of Transport, Twumasi Ankrah- Selby said government is now seeking a commercial arrangement rather than a PPP.
“What they are saying is the PPP which we intend to go into which they approved anyway from the recommendation from the feasibility repor, indicates that the venture we are trying to enter with the private sector is more of commercial arrangement and therefore the terms of the PPP which they the World bank expect is not as per the feasibility report coming out and therefore at the stage we have the feasibility report we can go ahead with that commercial arrangement and therefore there is no need for them to fund the feasibility and other things concerning the project.”
Chief Director of the Ministry of Transport, Twumasi Ankrah- Selby told Citi Business News that the ministry of transport is engaging transactional advisors Price Waterhouse Coopers on the establishment of a new national airline with regards to the funding gap created following the pullout of the World Bank.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana