Road tolls to go up

Road tolls are set to be increased early next year in a bid to boost revenues for the road fund, highly placed government officials have said.

The Road and Highways Minister, Alhaji Inusah Fuseini, and chairman of the Parliamentary Select Committee on Roads and Transport, Theophilus Tetteh Chaie, have both signalled imminent hikes in road tolls, which could further increase the cost of owning a car in the country following hikes in insurance and fuel prices.

“We are going to increase the tolls. As for the tolls we have even worked with the Ministry of Finance, and in due course you will hear that,”Alhaji Inusah Fuseini said.

Mr. Theophilus Tetteh Chaie also added: “We are pretending to be paying tolls; and the money we need to do maintenance, we are not able to meet the schedule. We should review and make sure we do it in such a way that we get the needed funds to support maintenance,” he told B&FT.

Managers of the Fund, which is backed by an Act of Parliament, Act 537(1997), also want levies to be put on petroleum products or fuel to widen the funding sources of the Road Fund.

“What we are proposing is that it should be a percentage, so that anytime the fuel goes up the percentage that accrues into the fund also goes up. When you are having more vehicles, it means more fuel is being consumed -- then the percentage definitely goes up without any adjustment in prices in terms of how much should be added; for us that should be the way forward” Mr. Tetteh Chaie said.

Cabinet has reportedly endorsed an increase in road tolls to pay the cost of maintenance for the roads.

Currently, the Road Fund has to go to Parliament for approval of toll increases. The MP for Ablekuma Central said the levy on petroleum prices will eliminate the need for authorities of the Fund to come to parliament and argue for an increase in road tolls.

The Committee supports the proposal submitted by the Road Fund and is considering the appropriate increase for tolls.

As at 2014, there were about 38 toll stations in Ghana including the Ada and Senchi Ferry stations. There are three categories of vehicles that ply the Tema motorway: namely commercial vehicles (trotro), private vehicles, and big trucks. Commercial vehicles (trotro) and 4x4s are charged GH?1 while big trucks are charged GH?2, with saloon cars and taxis paying 50 pesewas.

Alhaji Inusah Fuseini said road tolls contribute 10% to the Road Fund, a percentage he deems inadequate.

The decision to increase road tolls has received backing from the Association of Road Contractors (ASOROC), which has been pushing for an increase on the grounds that Ghana’s tolls are the lowest in the sub-region. Motorists in Togo pay about CF400 (about US$1or 100 cents).

President of the ASOROC, Ebo Hewton, said government has been in arrears for the past two years now.

A report published by the Auditor General’s Department in 2013 revealed massive corruption in the administration of road funds.

The report revealed that six toll-booth operators failed to account for more than GH¢9million between January and June 2010.

Tetteh Chaie explained that government has to borrow US$40million to do all the asphaltic overlays in the Accra metropolis, which he reckons will not only reduce the cost of transportation but also reduce health risks in terms of pot-holes.

“The road fund generates a little over GH¢300million. On a yearly basis, it spends about GH¢850million to carry out maintenance works. There is a huge funding gap, and as a result we are unable to pay contractors adequately.”

In 2014, a debt of about GH¢300million was carried over into 2015, meaning the Fund is struggling to meet its needs.

He conceded that the Fund owes contractors more than GH¢322million, and added that there are other outstanding debts it is grappling with.

“In the year 2010 and 2008, because of this same problem, government had to borrow to pay local contractors.”

The loan government took from SSNIT has accrued an interest of GH¢323million. “So if you combine the loan that was taken and the current indebtedness to the local contractors, it means there is a shortfall of about GH¢650million. That is the situation of the Road Fund.”

For him, the way forward -- along with the committee members in parliament -- is to support the Road Fund, and he is thus pushing for proposals to shore-up the Fund.

One of the proposals the Committee intends to carry through is that a portion of the Annual Budget Funding Amount (ABFA) be taken and given to the Road Fund, so it can be used for maintenance.