Tema motorway phase II: Japan appeals to govt for tax waiver to start work

The Japanese government is appealing to the Government of Ghana to extend tax waivers to some third nationality suppliers in order to pave way for the commencement of phase II of the Tema Motorway project.

President Nana Addo Dankwa Akufo-Addo last year commissioned phase I of the project which was financed with a grant of $56 million (six billion yen) secured from the Japanese government and undertaken by a Japanese construction firm Messrs Shimizu Dai-Nippon.

However, it has emerged that Phase two of the Interchange which was scheduled to commence in the last quarter of 2020 is being delayed due to the demand by the Japanese government to ask for additional tax waivers for other subcontractors from countries that are party to the agreement.

Speaking at a meeting to brief Ghana’s Minister for Foreign Affairs and Regional integration Shirley Ayorkor Botchwey on the status of the project and other issues on Friday, March 26 2021, the Ambassador of Japan to Ghana, Himeno Tsutomu explained that “we are keenly aware of the importance of this project and we are very eager to proceed but we are stuck on some tax exemptions matters. It is not about the Ghanaian sub-contractor. That issue has been resolved because we never thought of including Ghanaian local suppliers. What remains is the third nationality subcontractors. The Ghana side has agreed to give exemptions to Japanese companies and we agreed not to ask for exemptions for Ghanaian companies but what remains is the third nationality companies and we don’t know where your government stands on this issue”.

He added, “Without resolving this issue we cannot ask your minister’s time to sign this agreement, so we are very anxious to make a move”.

For her part, Shirley Ayorkor Botchwey indicated that the legal departments of the Ministries of Foreign Affairs and Finance are taking a cursory look at the considerations and will soon conclude their works to pave the way for the commencement of phase two of the project.

She added that President Akufo-Addo has declared this year as the second year of roads hence there will be the need for more Japanese investments and support in this area.

The minister also called for support in the area of healthcare where the government plans to expand health care infrastructure through agenda 111, which envisions a new hospital, at least, in each district in Ghana.