Parliament on Wednesday, 20 July 2022, approved a $750 million Afreximbank loan agreement requested by the Finance Ministry.
The loan is part of a $1 billion dollar facility, the government is seeking to shore up its reserves as well as to pay for several infrastructure projects across the country.
The government had informed the house that the loan will be used for the Suame Roads, Sofoline interchange, Flowerpot interchange and all African Games infrastructure.
The Minority previously opposed the loan agreement and accused the government of duplicating projects captured under the agreement.
But it later threw its weight behind it during the debate to avert what they call a collapse of the country’s economy if the loan is not approved.
Ranking Member on the roads and transport committee Kwame Governs Agbodza explained that the Minority was not necessarily opposed to the deal.
“We have noticed some projects being duplicated in the agreement. We do not believe this is right and we will not encourage it. We want some clarifications.
“The real problem in the Eastern corridor is the Oti-Damongo session, which the Chinese have failed to deliver, and we are encouraging the Minister for Roads and Highways to terminate the contract and reward it.
“If we have any resources, we should be setting aside some money for the new contractor to complete the session. We believe that the breakdown is not satisfactory. We are not necessarily opposed to the $750 million. We only want to get things clearer,” Mr Agbodza told journalists prior to the approval.
The Chairman of the Finance Committee, Kwaku Kwarteng, who laid the motion for approval said the loan will help the government raise the needed funds to complete the infrastructural projects in the 2022 budget.
“Mr. Speaker having carefully examined the agreement which forms part of the government’s programme aimed at raising funds for infrastructural projects in the 2022 budget, I will accordingly urge this House to approve this facility in order that Ghanaians may reap the benefits the facility will bring,” he indicated.
The motion was seconded by the Vice Chairman of the Committee, Patrick Boamah.
The government had expressed its intentions in the 2022 Budget Statement and Economic Policy to raise up to the Ghana Cedi equivalent of $750 million under a syndicated term loan facility arrangement to support the implementation of the 2022 Budget.