Kpando-Worawora-Dambai road get the final nod

Parliament on Thursday by 117 votes to none against adopted a 21.5 million dollar loan agreement for the pre-financing of a 50 kilometre portion of Kpando-Worawora-Dambai road project which has been on the drawing board from the National Democratic Congress (NDC) era.

Under the agreement Bilfinger Berger AG International, the designers and contractors of the road, would pre-finance the project.

The loan has a five per cent interest rate per annum, a moratorium of 12 months and a repayment schedule of five half-yearly instalments.

The road project received a lot of publicity during the NDC era and when New Patriotic Party (NPP) took over the loan agreement was laid before Parliament on December 19, however, it was noted that the interest rate which was five per cent half-yearly inclusive of all fees and charges, was not concessionary.

According to a report from the Joint Committee on Finance and Roads and Transport on the loan it was, therefore, considered to be unacceptable because the interest to be paid when compounded, would eventually have been more than 10 per cent.

The report said "the government of Ghana through the Ministry of Finance renegotiated the interest rate with the contractors and the reviewed the loan agreement was re-laid on January 29, 2003 in Parliament."

It recognised the economic and social importance of the road, which is believed to be the shortest between the North and South, and said although the 50-kilometre stretch would not get to Dambai but efforts would be made to complete it.

The report explained that the contractor worked on the first phase of the road and had his equipment on site and that it was prudent for the same contractor to continue from where he had stopped.