Ghana’s Aviation Minister Joseph Kofi Adda has called on heads of agencies across the country to take the needed steps to protect the public purse as far as public procurement is concerned.
The Minister made the remarks while giving his keynote address at the sod-cutting ceremony for the construction of the Ghana Civil Aviation Authority’s new headquarters building and the Kotoka International Airport’s Northern Apron Project.
The two major projects are all expected to be completed in 2 years.
According to Mr. Adda, the two projects when completed will give meaning to government’s plan of creating a conducive environment for the private sector to thrive in order to propel growth and generate employment in the sector.
Mr. Adda explained that the two projects are significant steps in fulfilling the vision of President Akufo-Addo to expand the frontiers of the aviation industry and also in seeking to make Ghana the aviation hub within the West African Sub-Region.
He added that government is creating the space to accommodate more aircraft in anticipation of the steadily growing aviation traffic into and out of Ghana.
He noted that by making available space to the regulator, the Ghana Civil Aviation Authority (GCAA) the industry will be equipped to operate sufficiently.
Minister laments interest rate on T3
According to Mr. Adda, the interest rate for the loan secured for the construction of the Kotoka International Airport terminal 3 for example was too costly.
In 2015, Ghana Airports Company Limited (GACL) secured a US$250 million dollar loan for the construction of Terminal 3, at the Kotoka International Airport at an interest rate of Libor plus 8.5%, with a goal of expanding the facilities at the Kotoka International Airport to accommodate the gradually increasing number of passenger as well as increasing the number of airlines servicing the airport.
While highlighting the expensive nature of the credit facility to the media Mr. Kofi Adda said it is negatively affecting the Ghana Airports Company Limited.
“The credit facility which attracted interest rate of Libor plus 8.5% at the time was extremely high and now a few years after, it still has the effect of what one might say is amounting to strangulating the Ghana Airport Company Limited”.
The situation he said has resulted in the company’s inability to undertake other projects.
“The government has had to renegotiate the interest down to Libor plus 5% which is still not enough and so we continue to look for ways to bring it down even lower.”
The Minister urged the Ghana Airports Company Limited as well as the Ghana Civil Aviation Authority, to ensure that the public purse is adequately protected at all times as directed by President Akufo-Addo.
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By: Bobbie Osei/citibusinessnews.com/Ghana