Parliament approves loan for Sogakope-Akatsi road

Parliament, by a vote of 106 on Tuesday approved a loan agreement of 12.8 million Euros between the Government and German Bank for Reconstruction (KfW) to support the road rehabilitation from Sogakope to Akatsi.

The loan has an interest rate of 0.75 per cent per annum, repayment period of 30 years, grace period of 10 years, and project period of four years and commitment fee of 0.25 per cent per annum on unutilized portion of the loan.

Works under the project, include improvement of the alignment at the poor sections, reconstruction of the base material of the entire road length, desilting or reconstruction of culverts, asphalting of the wearing course, laying of two metre wide bituminous rated shoulders on each side, and installation of necessary traffic control devices.

Presenting the Finance Committee Report on the loan, the Chairman, Eugene Atta Agyepong, said currently the road, which is a national road with bituminous treated surfacing, is heavily distressed at several locations.

He said maintenance activities aimed at providing temporary relief have not been able to strengthen the road in any way leaving it with several cracks and potholes. He said it continues to pose trafficking danger to both drivers and the communities living along the road.

Atta Agyepong said the Sogakope-Akatsi road also forms an integral part of the trans-West African Coastal Highway Network, adding that its rehabilitation would further enhance the socio-economic integration of Ghana and its neighbouring ECOWAS countries.

He said when the road is rehabilitated; it would provide a safe and reliable road facility for the travelling public, reduce vehicle operating costs and travel times within and between the country and her neighbours.

Atta Agyepong noted that the terms and conditions of the loan were very satisfactory with a concessionality rate of 72 per cent. The House also, by a resolution of 107 approved a 10 million-dollar loan for the financing of Six Towns' Water Supply Project in the Eastern Region.