Parliament approves $750 million loan deal for infrastructure projects

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The loan was approved after finance committee chairman Kwaku Kwarteng brought the motion to the House for approval.

The remaining $250 million was rejected by the minority for lack of clarity. Ranking Member of the Roads and Transport Committee, Kwame Governs Agbodza, has asked the Minister of Finance and the Ministry of Roads to clarify the components of the loan before approval.

Mr President, having carefully considered the agreement which is part of the government’s program to raise funds for infrastructure projects in the 2022 budget, I will therefore urge this House to endorse this facility so that Ghanaians can reap the benefits.said Mr. Kwarteng.

OFor its part, the Minority declared: “we found that certain projects were duplicated in the agreement. We don’t think that’s fair and we won’t encourage it. We want clarification…

We just want to clarify things. The information we have collected so far is too limitedMr. Agbodza told reporters in Parliament on Wednesday (July 20th).

Moreover, the ranking member of the finance committee, Cassiel Ato Forson, had reason to complain about the level of the country’s debt.

He estimated that all the tax revenue accumulated from the first quarter of the year was consumed by interest payments and amortization for the same period.

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

Mr. President, let me state publicly that I have serious concerns about Ghana’s debt sustainability issues. Mr. President, currently, according to data from the Ministry of Finance published on its website, it is clear that in the first quarter, Ghana recorded total tax revenue of GHS 12.9 billion. Of this amount, debt service obligations alone consisting of interest payments and amortization GHS13.9 billion.”

In the meantime, here is the list of projects, the government has informed Parliament that the 750 million dollars will be used for:

  1. Roads of Suame
  2. Sofoline exchanger
  3. Exchange of flower pots
  4. All African Games infrastructure

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