Mr Ken Ofori-Atta, the Minister of Finance, has signed a $23.8 million loan agreement with the Kuwait Fund for Arab Economic Development for the rehabilitation of the Dome-Kitase road.
The project, when completed will connect the Accra-Kumasi road (N6) to the Accra-Aburi-Koforidua highway (N4) and provide an alternative route to road users thereby reducing traffic congestion on the two national roads.
The financing terms for the loan facility are an interest rate of 1.5 per cent (including 0.5 per cent administration charges), maturity period of 28 years (including four years’ grace period) and two payments (equal principal payments) per annum.
Speaking at the event, Mr. Ken Ofori-Atta said the agreement was a milestone in strengthening bilateral relations between the two countries.
He added that the road when would provide a vital linkage between Greater Accra and Eastern Region.
“It will also reduce travel time and congestion on the Accra-Aburi Road; vehicle operation costs and increase in accessibility, convenience as well as safety of commuters.”
Mr Nedhal Alolayan, Deputy Director-General of the Kuwait Fund for Arab Economic Development, who signed the agreement on behalf of the state of Kuwait, said the Kuwait Fund efforts in the development of Ghana goes far back as 1977, when the fund participated in the financing of the Kpong Hydro-Electric Project with a loan equivalent to about GH¢ 167,000,000.
“We cherish our cooperation with Ghana and assure you of our continued support to serve our common objective of development and to strengthen the friendly relations between our two countries.”
He added that both Cabinet and Parliament have given their approval for the project and therefore, there should be no fear of fund management activities.
Mr Kwasi Amoako-Atta, the Minister of Roads and Highways, said his Ministry identified the 19.1km Dome-Kitase road, inclusive of the one kilometre Ashesi University internal roads as one of its key priority projects.
He further expressed gratitude to the state of Kuwait for the loan and other facilities granted them in the past that has enabled developmental projects such as; the Korle Lagoon Ecological Restoration Project (Phase I and II); Aboadze-Volta Transmission Line Project; Accra Plains Irrigation Project feasibility study; Maternity and Children’s Hospital feasibility study, which had all been completed and the expansion and development projects of 26 existing senior high schools.
He noted that the provision of this concessional financing was in line with the Government’s agenda for the provision of road infrastructure and development of critical road sections across the country to accelerate the socio-economic development.
Mr Ofori-Atta on behalf of the Government expressed gratitude to the State of Kuwait and the Kuwait Fund for Arab Development for their unflinching commitment and support to Ghana’s development agenda, especially for the provision of the support for the rehabilitation of the Dome-Kitase Road Project which is estimated to be three years and is expected to be completed by the end of 2022.
The Kuwait Fund loan will cover about 64 per cent of the total costs of the Project, while the remaining costs of the Project will be covered by the Government of Ghana.