Government to use petroleum revenue to fund Accra-Kumasi expressway – Ato Forson

Finance Minister Dr Cassiel Ato Forson says the government will no longer borrow to finance the Accra-Kumasi Expressway project, opting instead to use petroleum revenues and mineral royalties to fund major infrastructure developments.

Speaking at the Ishmael Yamson and Associates Business Roundtable held on Thursday at the Kempinski Hotel Gold Coast City in Accra, Dr Forson said the decision forms part of the government's "Big Push" agenda aimed at improving road infrastructure across the country.

According to him, the government has earmarked about GH¢4.5 billion in this year's budget for road infrastructure development, with a strong focus on major projects.

He explained that, in the past, oil revenues were spread across several activities that did not directly support infrastructure development.

“We have changed the law. We have said that Ghana’s oil revenue should only be used for infrastructure projects,” he stated.

Dr Forson said the government now intends to dedicate petroleum revenues to one major project over a fixed period to ensure the prudent use of state resources.

He disclosed that the government raised nearly $500 million from oil revenues last year and secured another $500 million from mineral royalties following the rise in global gold prices.

According to him, the two revenue sources generated about $1 billion, which is being used to finance the Accra-Kumasi Expressway project.

The Finance Minister noted that the government expects to generate an additional $1.5 billion this year, bringing the total available funding for the project to about $2.5 billion over two years.

He said the Accra-Kumasi Expressway is expected to cost about $4 billion, adding that the government plans to fully finance the project without borrowing.

“We will fund it without borrowing,” he stressed.

Dr Forson criticised past spending practices, saying portions of oil revenue were previously used for activities such as travel, conferences, and other recurrent expenditures instead of development projects.

He said the government has ended such practices and will instead focus on major infrastructure projects that will deliver long-term benefits to the country.

According to him, after the completion of the Accra-Kumasi Expressway, the government will identify another major infrastructure project to be funded using the same approach.