Business News of Thursday, 6 December 2018
Parliament has approved a US$210m facility that will help synchronise traffic flow and traffic information systems in the capital.
The system will also provide real-time information to guide drivers on the status of traffic on the various roads, especially during peak hours.
This was contained in a Finance Committee report on the fourth subsidiary agreement between government and China Development Bank (CDB) for an amount of US$210m in relation to the Accra Intelligent Traffic Management Project under the Tranche B facility.
The facility is in relation to the Accra Intelligent Traffic Management Project under Tranche B facility [a master facility agreement between government and China Development Bank]
According to the report, the purpose of the Fourth Subsidiary Agreement is to draw funds from the Master Facility amount to undertake the Accra Intelligent Traffic Management System (AITMS) and the Road Completion and Consultancy Project.
The terms of the fourth subsidiary agreement include US$236m as the project amount, US$37m as government’s contribution (US$35.42m for the project and US$1.76m for sinosure premium).
The total cost of the Accra Intelligent Traffic Management (AITMS) Project is US$236m (excluding the sinosure premium) of which CDB is financing US$200.68m while government pays the remaining US$35.42m.
The project is made up of two components, namely Intelligent Traffic Management and Road Completion. Under Intelligent Traffic Management, the purpose is to improve transport infrastructure and reduce traffic congestion in the Greater Accra area, enhance safety for pedestrians, and promote urban renewal.
In line with these broad objectives, the AITMS will improve traffic flow, trip reliability and safety in Accra through an appropriate coordinated traffic signal system and a centralised control centre for all traffic signals.
The cost of the Intelligent Traffic Management System is estimated at US$100m.
The second component focuses on road completion in areas within the greater metropolis that will benefit from the transaction.
Some of these are lengthening the La Beach Road to 16.0km; lengthening coastal and meridian roads to 10.6km; lengthening Teshie Link, Teshie to the Accra-Tema Motorway to 7.5km, lengthening Teshie link, Teshie to the Accra-Tema Motorway.
The cost of the road completion and consultancy services is US$136m.
The Committee’s report also noted that the Independence Arch-Nungua Barrier and the Coastal Meridian roads form a critical part of the road network linking Tema Harbour to the capital.
The redevelopment of these roads will help ease the traffic congestion currently being experienced by motorists on those stretches of roads.
It will also enhance easy access to the port, reduce travel time and generally improve the business climate in the Accra-Tema area.
Construction of the Teshie Link Road will also enhance vehicular movement on that stretch, and more critically facilitate access to the LEKMA hospital that was built by the kind courtesy of the People’s Republic of China.
The Master Facility Agreement between the government of Ghana and China Development Bank (CDB) for an amount of US$3billion to finance Infrastructure Development Projects in Ghana was first laid in parliament and approved on 26th August, 2011.
The Facility is to be disbursed through two windows (Tranche A and Tranche B), and specific disbursements under each of the Tranches are to be determined project-by-project – as will be spelt out in subsequent Subsidiary Agreements.