The government will save 4 million euros thanks to the Kumasi Airport project

Company News from Tuesday, April 16, 2019

Source: Graphic.com.gh

2019-04-16

The government could save an amount of 4 million euros when it combined phases two and three of the Kumasi Airport redevelopment project, said the Ghana Airport Company.

In addition, the combination of the two phases should minimize downtime and delays in the delivery schedule.

It should be recalled that at the project design stage it was decided to split the project into three phases because of the Economic Management Agreement between the Government and the International Monetary Fund (IMF), which established limits to borrowing.

Now that the IMF program has been completed and phase two of the project is underway, Ghana Airport Company Limited (GACL) has therefore advised the government to allow it to combine phase three with phase two and simultaneously carry out both. phases.

GACL also believes that the combination of the two phases would eliminate construction interruptions on the terminal once the airport is inaugurated.

Phase two of the projects includes the construction of a new pbadenger and ground terminal, the construction of a car park and an access road, and the extension of the runway and badociated infrastructure. The third phase includes the construction of a new control tower new boarding bridges, new fire station and runway track.

This was brought to light when officials from GACL and the Ministry of Aviation met with the Special Parliamentary Committee on Roads and Transport to discuss the agreement between the Government of Ghana and Contracta Construction UK Limited relating to a contract of 58.9 million euros for the execution of contracts. phase three of the redevelopment project at Kumasi Airport.

Additional financing

The committee noted that, based on preliminary discussions between GACL, the Ministry of Aviation had requested additional funding for phase three of the project.

The Ministry of Finance then hired Deutsche Bank, London, and tasked it with structuring and facilitating the export credit to finance the project at a contract price of 58.9 million euros. .

The Panel observed that GACL, which would ultimately own and operate the Kumasi Airport, is currently facing some funding constraints due to the service of commercial loans contracted to finance the projects of the third terminal of the Kumasi Airport. Kotoka International Airport (KIA) and Ho Airport.

It is in this context that the Ministry of Finance makes sure to finance the retrocession project at Kumasi airport at GACL.

Benefits of the project

The development of Kumasi Airport should make it a strategic commercial airport linking the sub-region and facilitating the movement of people and goods, while attracting more investment that can create jobs and catalyze tourism. economic growth.

It is also expected to stimulate the agricultural sector and benefit from the export of fresh produce while supporting a national strategic objective focused on agriculture.

The project would also contribute to facilitating the growth of domestic air traffic and would be one of KIA's main national spokespersons and would exploit the enormous potential for growth of traffic on national roads and Regional Offices, in support of KIA as a hub for aviation in West Africa.

It is also expected that the tourism sector will receive a huge boost in order to fully realize the great potential of tourist and cultural sites, particularly in the Ashanti, Bono and Ahafo regions. .