Pioneering Ghana’s Next-Generation Highway Systems
HISTORY
The Accra-Tema Motorway is a 19.5km dual carriageway between Accra and the industrial city of Tema. When it was opened as a freeway in 1964 by Dr. Kwame Nkrumah, the design life was intended to be 20 years. Having outlived its serviceability and requiring reconstruction and to address traffic bottlenecks by improving road linkages between Accra, the Tema Port to other regions in Ghana and the Sahel, the Government of Ghana took an initiative to redevelop the Accra-Tema Motorway and adjoining roads under a Public Private Partnership (PPP) arrangement. An international competitive PPP tender commenced in 2019 led to a consortium of private investors being selected as the preferred proponent with a total project cost of US$730M and expected to largely be financed by a Viability Gap Funding (VGF) of US$420M. Negotiations between the GoG and the preferred party was unsuccessful, and the process was terminated in 2020.
Following the unsuccessful negotiations and in line with the PPP Act (Act 1039), GIIF was mandated by GoG through the Ministry of Finance, to provide a GIIF-led PPP financing solution for the project, where maximum funds are raised from the market, but majority ownership of the project remains with GIIF, on behalf of the Ghanaian people.
The clear advantage of a GIIF-led solution for “Ghana Inc.” over the foreign consortium solution, is that the project with all its benefits (revenue collection, ensuring high Ghanaian participation in sub-contractors, retention of Ghanaian experience to do other similar projects, etc.), remains in Ghanaian hands, for maximum local participation.
Subsequent to a redefined project scope, structuring and negotiations, Parliamentary approval for the Concession Agreement was sought and obtained in December 2023. However, the approval to collect tolls at specific tariffs will be delayed to a later date. The main advantage of this is the flexibility it provides to request Parliamentary approval related to the collection of tolls, which crucially will enable a much more commercial toll to eventually be approved.
Pursuant to the requisite approvals, GoG, acting through the Ministry of Roads and Highways, acting through the Ghana Highway Authority (“GHA”) as Contracting Authority, entered into a 30-year concession agreement (the “CA” or “Concession Agreement”) with A.T. Expressway Ltd (“ATEL”) as Concessionaire for the implementation of the Project.
A.T. Expressway Ltd, a wholly owned subsidiary of the Ghana Infrastructure Investment Fund (“GIIF”), was incorporated to finance, design, build, operate and maintain the Accra-Tema Motorways & Extensions pursuant to the Concession Agreement. The US$650M Accra-Tema Motorway & Extensions Project (“ATMP” or the “Project”) involves an upgrade of 27.7km of the national road network in the Greater Accra Region together with the operation and maintenance of the road, including toll road system on certain sections. The Project will be delivered in two phases, ensuring timely delivery and efficiency providing solutions to the address the challenges with the freeway.
Section Length Scope:
ATEL intends to use the ATMP to build capacity within Ghana on executing such projects in the future, both on the EPC and O&M sides. Future projects could Accra-Kumasi etc., which have been discussed for over a while without progress. We will have proven that we no longer need to rely upon foreign expertise and funding for such projects.
Mission & Vision
OUR VISION
OUR MISSION
OUR COMMITMENT
At ATEL, we are dedicated to developing world-class infrastructure that drives Ghana’s economic growth and strengthens local expertise. Through the Accra-Tema Motorway & Extensions PPP Project, we are not only enhancing transportation networks but also building capacity within Ghana to execute similar projects independently in the future. By prioritising local participation, innovation, and sustainable development, we aim to reduce reliance on foreign expertise and funding, ensuring that critical infrastructure projects remain in Ghanaian hands for the benefit of our people and future generations.