Minister for Roads and Highways, Francis Asenso-Boakye, has revealed that the government is considering the use of domestic pension funds to finance major road and bridge projects, once Ghana exits its current programme with the International Monetary Fund (IMF).
The Minister explained that although the Finance Ministry is already looking into this option, the government’s hands are currently tied by the IMF agreement, which restricts any move that resembles borrowing or long-term financial commitments.
“The government, through the Finance Ministry, is exploring this. Yes, I know that the pension fund has got very healthy amounts in there during an interview on The Citi Breakfast Show with Bernard Avle.
“In fact, some of the banks are even coming forward to do things but you see some of those things can be done after the IMF [deal] because currently we are not allowed to actually enter into anything that looks close to additional borrowing or commitment,” Asenso-Boakye noted.
He added that despite several financial offers being made from various sources, the government is constrained by the IMF conditions.
“In fact, people come to me every day. I have a friend in Dubai who says I have two billion, another in Turkey who says I have three billion.
“I simply say that we are under an IMF programme. You would require government commitment and the government cannot give you one cedi of commitment as long as we remain under this programme,” he stated.
His remarks come at a time when the country’s road infrastructure needs continue to grow, with many stakeholders pushing for innovative financing mechanisms to close the funding gap.
