Ghana to self-finance Ashaiman-Akosombo road project after €256m German loan delays

The government has decided to finance the Ashaiman-Akosombo Eastern Corridor LOT 1 project with domestic resources under the Big Push programme after delays in accessing a €256 million German loan facility.

Roads and Highways Minister Kwame Governs Agbodza announced the funding switch during an inspection of the project, which began in May 2022 but has suffered significant delays.

The loan, arranged through Standard Chartered PLC under an export credit facility, was delayed amid Ghana’s debt crisis, affecting the progress of the road project.

Mr. Agbodza said the government would retain the existing contract but replace the loan arrangement with direct government funding.

“The scope doesn’t change. The terms of the actual work doesn’t change. It is just a source of fund that will become full-fledged big push,” he said.

He said the contractor had proposed a revised 22-month construction programme, with completion expected around October 2028.

The Minister also said similar funding arrangements were being adopted for the Aflao Road and Bolgatanga-Bawku-Pulmakom road projects.

The Ashaiman-Akosombo project covers approximately 64 kilometres, stretching from the Ashaiman Roundabout to Akosombo Junction. Its scope includes a dual carriageway, a flyover at the Ashaiman Roundabout, an interchange at Asutsuare Junction, 11 pedestrian footbridges and three river bridges.

Construction commenced in May 2022 with an initial 30-month completion period. However, the project experienced a suspension in July 2023 amid the government’s debt exchange programme, with financing difficulties affecting progress.

The Big Push is the Mahama administration’s infrastructure investment programme aimed at accelerating strategic road and bridge projects, including completing projects inherited from the previous government that lacked adequate funding.

Mr. Agbodza said the new funding arrangement was intended to remove the financing bottleneck and allow the contractor to complete the outstanding works.

He urged contractors to increase their capacity ahead of Christmas to prevent prolonged traffic congestion along the corridor, while calling for construction activities to extend beyond Shai Hills towards the Adomi Bridge.