New financing model for SHS will allow private sector to finance infrastructure – Bawumia

Vice President, Dr. Mahanudu Bawumia has reiterated his commitment to engaging the private sector more in the provision of national infrastructure.

During his recent major policy address as flagbearer of the NPP on February 7, Dr. Bawumia said that as part of his government’s strict measures to adhere to fiscal discipline, he will engage the private sector to fund capital projects to reduce government expenditure.

At a meeting with the Conference of Heads of Assisted Senior High Schools, Dr. Bawumia announced that under his government, school infrastructure will be funded through a public, private partnership arrangement with the private sector to ensure the provision of more infrastructure and minimise the burden on the government.

“My administration will incentivize the private sector to complement government in the provision of many infrastructure and other services to reduce government expenditure and improve maintenance,” he said.

During his major policy address, Dr. Bawumia announced a wide range of infrastructure, apart from schools, which he will engage in the private sector to fund.

“The private sector will be encouraged to build roads, schools, hostels, and houses for government to rent or lease to own. The demand for road construction is massive, and this has historically placed a huge burden on the budget. I believe that the private sector should finance the construction and maintenance of roads through PPP concession arrangements,” he added.

Dr. Bawumia’s vision is to leverage the private sector and an enhanced credit system to expand educational infrastructure and support teaching and non-teaching staff to improve the quality of education and educational outcomes.

Under this proposed funding arrangement the private sector will be encouraged to build infrastructure (such as dormitories, classrooms, etc.) which government will rent over a period of years and own after some time.

The government will also lease buses for schools. This new mode of financing will avoid huge initial government outlays (through the GETFUND) and delays in the completion of infrastructure projects in our senior high schools.

This policy will reduce the educational infrastructure deficit, improve maintenance, enhance the quality of education, and at the same time improve the management of government expenditure.

The meeting with CHASS is the latest in the series of engagements Dr. Bawumia has been having key stakeholders meeting to explain his policies to them and also seek their input.