Parliament has approved a €55,000,000 million Credit Facility between the Government of Ghana and the Deutsche Bank AG, London, for the rehabilitation of the Kumasi Inner Ring roads.

The credit facility would cover the rehabilitation of the Kumasi Inner Ring Roads and Adjacent Streets Project first phase covers 100kms of road.

Dr Mark Assibey-Yeboah, Chairman of the Finance Committee, presenting the Committee Report, stated that the objective of the project is to facilitate socio-economic development of the country through an improved, efficient and cost-effective road transport system.

He said the project seeks to enhance road safety standards that integrate economic centres, contributing to poverty reduction and the improvement in the standard of living of the people in the project’s influenced areas.

He said the project aims to improve traffic circulation by enhancing the capacity of the road network by removing on the sections of the road network.

Dr Assibey-Yeboah also stated that the project intends to support the socio-economic development of Kumasi and surrounding communities by improving movement of people and goods, and that the project seeks to develop and strengthen the functions and amenities of Kumasi and its environs.

Dr Assibey-Yeboah also explained that the Kumasi Inner Ring Roads and Adjacent Streets Project have been divided into two phases for implementation purposes.

He said the entire project is programmed to cover 243kms of road and that the first phase covers 100kms whilst the second phase would cover 143kms of road.

Mr Alex Adomako-Mensah, MP for Sekyere Afram Plains noted that the commitment fee is too high because as soon as the project is signed, it would begin to draw down.

He said the Value for Money Audit, which is a condition precedent, has also not been done and therefore urged the Government of Ghana to ensure that this is done before the project would start.

Mr Adomako-Mensah urged the authorities to ensure that the relocation of utilities is done on time in order not to affect the commencement of the project.

He expressed the hope that the completion of the project would improve the waiting and the travel time of roads users in Kumasi and called on the Government to find extra loan to support rural communities which has poor road network.

Mr Benjamin Kpodo, MP for Ho Central, who was in favour of credit facility said the Ministry of Roads and Highs should undertake the Kumasi Inner Ring Roads and Adjacent Streets Project.

He called on government to arrange for a cheaper fixed rate of loans since the current facility was expensive, adding that when the Government is able to negotiate for a lower fix rate then its burden on the budget would reduce.

Source: GNA