The government has secured a funding model for the long-awaited Bolgatanga Airport project without resorting to loans, with President John Dramani Mahama expected to cut sod for construction in May, Attorney General and Minister for Justice, Dr. Dominic Ayine, has said.
Speaking in an exclusive interview on A1 Radio, Dr. Ayine, who is also the Member of Parliament for Bolgatanga East, said the project will be financed through internally generated funds from the Ghana Airports Company, supported by a newly approved airport development fee.
“We have solved that problem,” he said, referring to earlier concerns about funding. “We are a government that thinks outside the box.”
He explained that instead of borrowing, the government has introduced a $50 levy on every air ticket to support airport infrastructure development across the country.
“We looked at the volumes of traffic for the Kotoka International Airport, the number of passengers that come to Ghana and those that fly out, and we put a fee for the development of airports in the country,” he said. “And it’s just $50 on every ticket.”
According to him, the measure, which has already received approval from Cabinet and Parliament, is expected to generate substantial revenue.
“Come to think of it, if you have one million visitors, let’s say, in a month passing through the airport, that gives you $50 million,” he said. “So that is significant in terms of being a source of funding.”
Dr. Ayine stressed that the financing model avoids increasing Ghana’s public debt, drawing parallels with the construction of Terminal 3 at Kotoka International Airport between 2013 and 2016.
“We didn’t raise a loan from anywhere to build Terminal 3. We built it on the back of the books, on the credit strength of the Ghana Airport Company,” he said. “Terminal 3 belongs to the Ghana Airport Company. It does not have any debt to pay.”
He said the same approach will be applied to the Bolgatanga Airport and the Sunyani Airport projects.
“Bolgatanga Airport, Sunyani Airport, are going to be financed from public funds, from the IGF of the Ghana Airport Company, with no borrowing from any place,” he said.
He noted that while contractors may choose to pre-finance aspects of the project, such arrangements would not be tied to government borrowing.
“Government has a steady stream of income or revenue that will be used to finance the airport, and there will be no diversion of those monies for any other purpose,” he added.
Dr. Ayine said contractors have already mobilised and are awaiting the President’s visit to officially commence construction.
“The contractors have already mobilised and are waiting for the president to come and cut sod, and then they will start the construction of the airport,” he said.
The project is expected to be completed within 18 months.
He added that the facility will be a full-scale international airport capable of handling wide-bodied aircraft. “It is going to be a very beautiful international airport that can take wide-bodied aircraft,” he said. “For instance, Emirates can land here with their Boeing 787.”
Dr. Ayine disclosed that an additional proposal is being considered to incorporate military infrastructure into the airport project, given the region’s strategic importance.
The idea, he said, was introduced by the Chairman of the Ghana Airports Company and the Member of Parliament for Builsa North, James Agalga.
“Because of the fact that we have military presence in the region, there was a need for us to have a kind of attachment of military facilities,” he said.
He explained that such a facility would enable rapid deployment of security personnel to the northern sector when needed. “They will just bring them in a military air carrier and leave them there. They will have facilities that they can use when they are here,” he said.
However, he clarified that the proposal remains under consideration and will not affect the core airport project. “That won’t detract from what we are doing with the airport itself — the main airport, the tarmac, and the terminal,” he added.
Dr. Ayine said the President is expected in the Upper East Region next month to officially launch the project.
“So next month we’re going to see the president in the region cut sod for work,” he said. “Barring any unforeseen developments… he will be here in May.”
A1 Radio | 101.1 Mhz | Mark Kwasi Ahumah Smith | Bolgatanga
