November 24, 2024
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DR. BAWUMIA PROPOSES EQUITABLE ROAD-TOLLING SYSTEM TO BOOST INFRASTRUCTURE FUNDING

Vice-President Dr. Mahamudu Bawumia has proposed a broad-based road-tolling system aimed at ensuring equity in the funding of Ghana’s road infrastructure. Speaking at a panel discussion on road financing in Accra, Dr. Bawumia highlighted the disparities in the current tolling system, which tends to exclude wealthier areas while placing a heavier burden on less affluent regions.

Addressing Inequity in Tolling

Dr. Bawumia pointed out that under the existing system, residents of affluent neighborhoods such as Cantonments, East Legon, and Ridge are unlikely to encounter tolls, while those in areas like Kasoa are more frequently subjected to them. This, he said, creates an inequitable situation where a significant portion of the population is not contributing to road maintenance and development. By introducing a broader tolling system, the Vice-President aims to distribute the financial responsibility more evenly across all regions, ensuring that all citizens contribute fairly.

Innovative Financing Models

In addition to a more equitable tolling system, Dr. Bawumia called for the exploration of innovative financing models to generate sustainable revenue streams for road infrastructure. He emphasized the importance of mechanisms such as infrastructure bonds, road funds, and expanded toll systems, which could provide dedicated funding for road development and maintenance. These models would reduce the government’s reliance on traditional budgetary allocations, offering a more predictable and stable source of funding.

The Vice-President cited the success of the road fund, financed through fuel levies, as an example of how dedicated funding can significantly enhance road maintenance efforts. He expressed the government’s commitment to expanding such initiatives and exploring new models to bolster the nation’s funding capacity for infrastructure projects.

Public-Private Partnerships (PPP)

To further address the significant financing gap in road infrastructure, Dr. Bawumia advocated for the adoption of Public-Private Partnerships (PPP). With recent estimates indicating that Ghana requires $12 billion to clear the road maintenance backlog, PPPs could be a viable solution to bridge this gap. By fostering collaboration between the public sector and private investors, the government could unlock new funding streams and leverage the expertise needed for effective project implementation.

Dr. Bawumia emphasized the importance of building strong relationships with construction firms, engineering companies, and technology innovators to ensure successful partnerships. This collaborative approach, he argued, would enhance the government’s ability to finance and deliver essential road infrastructure projects.

The State of Ghana’s Road Network

During the same event, Minister of Roads and Highways, Francis Asenso-Boakye, provided an overview of the current state of Ghana’s road network. He revealed that the ministry, through its implementing agencies, manages a road network of 94,203 km, of which 28% is paved and 72% remains unpaved. As of the end of 2023, 44% of the road network was in good condition, 34% in fair condition, and 22% in poor condition. These figures fall short of the government’s original target of 70% good, 20% fair, and no more than 10% in poor condition by the end of 2025.

Mr. Asenso-Boakye noted that between 2017 and the end of 2023, the government had added 12,830 km of roads to the national network. However, he acknowledged that there is still a growing demand for more and better roads due to factors such as trade, transit, urbanization, and economic development.

Conclusion

Dr. Bawumia’s proposal for a broad-based road-tolling system, supported by innovative financing models and Public-Private Partnerships, represents a strategic approach to addressing the disparities and financial challenges in Ghana’s road infrastructure. If successfully implemented, these measures could significantly improve the country’s road network, ensuring that all regions benefit from equitable and sustainable development.

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