Vice President Mahamudu Bawumia has called for a broad-based approach in the country’s road tolling system to generate sufficient revenue to finance road infrastructural development.
He said there was inequity in the existing road tolling system which puts a lot of burden on few citizens, however, adopting digitalisation would capture more people into the country’s road tolling system.
The Vice President made the call during the 50th Anniversary launch of the Ghana Highway Authority and High-level Expert Panel Discussion, in Accra on Wednesday.
The event was on the theme: “Closing the Financing Gap in Road Infrastructure Development in Ghana”.
The panel discussion is aimed at finding innovative and strategic ways of financing the country’s road network, instead of relying solely on government budget.
The Vice President also underscored the need for public-private partnerships in securing funding for the country’s road network, noting that soliciting private sector funding was critical in relieving government of the burden of always providing funding sources.
“Our government is determined to close the financing gap through a multipurpose approach and wishes to propose fully policy initiative to address some of the identified challenges.
“Public-private partnerships offer a viable solution to budget the financing gap in funding road infrastructure development,” Dr Bawumia stated.
The Vice President hightlighted the importance of the country’s road transport network, noting that it facilitated the movement of over 90% of goods and people across the country.
Dr Bawumia noted that recent statistics indicated that Ghana required $12 billion to clear the maintenance backlog of the country’s road network and enable about 94,203 km of the roads to be at the optimal level.
“Our government recognises the critical role that road infrastructure plays in our national development agenda.
“We are committed to ensuring that our road network supports our economic ambitions, enhances the quality of life for our citizens, and leaves a legacy for future generations,”Dr Bawumia emphasised.
However, he said, the current funding levels only covered about 38% of the requirements, leaving a significant shortfall.
“This gap translates into deteriorating road conditions, increased maintenance costs, and missed economic opportunities,” he noted.
Globally, the situation is similar. For instance, the African Development Bank reports a continental infrastructure financing gap of between $68 billion and $108 billion annually.
The staggering figure underscores the importance of innovative solutions and strategic partnerships.
Under the leadership of the Akufo-Addo’s administration, Dr Bawumia stated that it prioritised infrastructure development as a cornerstone of the country’s economic strategy.
“We have made significant strides in expanding and improving our road network, yet we acknowledge that more needs to be done.
“Our government is determined to close the financing gap through a multipronged approach,” the Vice President added.
To foster successful partnerships in road financing, Dr Bawumia said, it was essential to build strong relationships with construction firms, engineering companies, and technology innovators who could provide both financial support and valuable expertise.
“Public-private partnerships are vital for sharing the responsibilities and rewards of infrastructure development. Such collaborations often lead to improved quality of infrastructure and can significantly reduce the burden on public finances, allowing for the reinvestment of savings into other essential areas,” he pointed out.
He stated that the Government had taken proactive steps to create an enabling environment for public-private partnerships.
“It includes streamlining regulatory processes and offering incentives to attract private investment. We believe that by working hand in hand with the private sector, we can accelerate our infrastructure development goals,” he added.
The Vice President was of the belief that exploring innovative financing models was essential to generating sustainable revenue streams to deal with the road financing gap.
By Godwill Arthur-Mensah
GNA
