FAQs

The Project consists of three distinct road links that function together to move traffic between Tema Port, Accra and its surrounding urban and peri-urban areas.

The scope of the project comprises roads constituting a 27.7km long road network made up of:

– Section 1: Tema Roundabout to Tetteh Quarshie Interchange – 19.5km3 (N1)

– Section 2: Tetteh Quarshie Interchange to Apenkwa Interchange – 5.7km (N1)

– Section 3: Apenkwa Interchange to Neoplan Junction – 2.5km (N6)

On completion, the Project will have a 10-lane Section 1, 12-lane Section 2, and a 6-lane Section 3. In addition, the Project will have five (5) new interchanges and two (2) remodelled interchanges (Tetteh Quarshie and Apenkwa).

GoG’s strategic decision is premised on three pillars:

1. The PPP Act provides for a project to be procured through GIIF when a competitively procured tender process falls through;
2. GIIF has the capacity to raise complementary long-term financing to deliver the Project on behalf of the Ghanaian people; and

3. Fits within GIIF mandate, as Ghana’s Sovereign Wealth Fund for infrastructure to catalysing the development of critical infrastructure in Ghana.

4. To deliver a local solution to a local problem by utilising Ghanaian expertise, capital and institutions.

GIIF was established to resolve a problem most African countries have experienced – which is how to unlock more private sector financing to try to fund and solve the infrastructure deficits in every African country.

GoG’s bold initiative to setting up a risk capital vehicle resulted in GIIF being established pursuant to the Ghana Infrastructure Investment Fund Act, 2014 (Act 877) with a mandate to identify, develop, invest, mobilize and manage investments in a diversified portfolio of infrastructure assets in Ghana for national development, in a profitable and sustainable way. GIIF is 100% owned by the Government of Ghana.

GIIF has not only relied on the initial funding it has received from the government. It has also raised US$160M long term debt financing from two premier global financing institutions, without a sovereign guarantee.

MRH acting through GHA as Contracting Authority has awarded a 30-year concession to A.T.

Expressway Ltd (the Concessionaire or “ATEL”) under a Concession Agreement.

As per the Concession Agreement, ATEL is responsible for the design, finance, build, operation and maintenance of the project. To this end, ATEL has signed a FIDIC Silver Book EPC Contract for the design of the three sections of the Project and the Construction of Section 1 Works. On expiry of the concession, the road and ancillary assets will be transferred to GHA.

GoG is responsible for the acquisition of additional lands and resettlement Project-Affected Persons (PAPs)

GHA as Contracting Authority is responsible for the relocation of utilities within the project’s corridor. GHA also plays a dual role of being the Employer’s Representative responsible for providing project supervision services to ATEL for the Section 1 Works. M/S Associated Consultants Limited acts as themEmployer’s Representative Agent providing consultancy services on behalf of GHA and ATEL.

MOF to fund applicable taxes on Section 1 Works

ATEL, a private limited liability company, is raising equity and debt funding to complement GoG’s construction grant for the development of Section 1, Sections 2 and 3 of the Project on its balance sheet. The capital being raised is without a GoG Guarantee and will not count towards the national debt.

To recoup its investment, ATEL will toll Sections 1 & 2 only but operate and maintain all sections for the period of the concession. ATEL will also pay concession fees to GoG through GHA for the term of the concession.

ATEL is the Concessionaire and is currently owned by GIIF. ATEL is currently raising equity and debt financing under the PPP structure to increase private participation in the project.

The PPP Act informs the basis on which the Project would be approved and delivered.

Pursuant to the Public Private Partnership Act 2020 (Act 1039), the Concession Agreement has been approved by the PPP Committee and Cabinet. Parliament granted its approval of the Concession Agreement on 15th December 2023 in accordance with the Act 1039.

The responsibility for engineering, procurement and construction of the project is that of the Concessionaire. The Concessionaire through a FIDIC Silver Book EPC contract, will transfer the obligations and risks to an EPC contractor.

As Concessionaire, ATEL has awarded the contract for the Phase I of the Project to M/S Maripoma Enterprise Limited (MEL) under a FIDIC Silver Book EPC Contract. MEL is responsible for the design of the three sections of the project and the construction of the Section 1 Works only.

The Phase 2 (made up of EPC for Sections 2 and 3) and the Operation and Maintenance (O&M) procurement packages are being developed.

The Project will be delivered in two phases as follows:

Phase I is Section 1 – the Accra Tema Motorway (19.5km); Phase II is made up of :

5. Section 2 – George Bush Highway (5.7km)
6. Section 3 – a portion of the Nsawam Road (N6) linking to the N1 (from Neoplan Interchange to Apenkwa) (2.5km).
7. Operation and Maintenance of the Project

The FIDIC Silver Book is often preferred in EPC/Turnkey projects, particularly those that are project- financed, because it provides a high degree of cost and time certainty. This is achieved by allocating most of the project risks to the contractor, including design and completion risks, which makes it attractive to lenders who want to minimize financial exposure.

Lenders require greater certainty about a project’s final costs as part of due diligence on bankable projects among others. Typically, the traditional allocation of risks in contracts such as FIDIC’s Red and Yellow Books result in final cost uncertainties that tend to make lenders weary of construction risk and its related cost.

In response to providing a bankable solution to a local problem, the Concessionaire negotiated and awarded Silver Book EPC contract to Maripoma Enterprise Limited to provide certainty of construction contract costs for Phase I of the Project.

Currently, the Concessionaire has signed an EPC contract for the Phase I which covers the design of the entire 27.7Km project and the construction of 19.5Km Section 1 Works.

The construction of Section 1 would cover 36 months (including a period for detailed design) for a maximum US$340M, exclusive of applicable taxes.

Maripoma Enterprise Limited is a private limited liability construction company incorporated in Ghana and is the Phase 1 EPC Contractor.

It is a fully indigenous Ghanaian company with a multi-million construction portfolio handling projects in Ghana and beyond.

The Phase 1 is currently ongoing. The design and construction of Section 1 (which includes the Accra- Tema Motorway, 3 new interchanges at Teshie Link, Lashibi and Community 18, and extends to Accra Polo Club and Emmanuel Eye Clinic) would be completed in 36 months ending August 2027.

This ambitious project is Ghana’s first road PPP and provides a structure that gives the Ghanaian people a significant stake in the Project. The PPP structure will provide accountability and private sector participation in this significant road infrastructure. The Project presents a secure investment opportunity for institutions and investors seeking viable long term investment. The successful implementation of this project will set the tone for similar PPPs in Ghana and beyond.

Once built and de-risked, the project can be refinanced by local investment institutions such as pension funds, allowing the initial GoG funds to be repaid to the MOF, or used to fund future road projects. This will allow local investors the opportunity to participate in this flagship Ghanaian project, whilst introducing them to well-structured infrastructure investments which they have been seeking.

Financial benefits accrue to GoG. GIIF owns the Project, on behalf of the Ghanaian people, and therefore accrues significant financial benefits on behalf of the Ghanaian people.

The PPP structure allows for the involvement of key local financial institutions

Concession fee is payable to GoG throughout the operational life of the Concession.

In 2020, the GoG acting through MoF, requested GIIF to develop a GIIF-led PPP solution for the delivery of the Accra-Tema Motorway and Extensions Project (ATMP) that leverages GoG anchor capital in the form of a construction grant (Viability Gap Funding) by raising maximum funds from the market. This mandate resulted in GIIF incorporating ATEL as an initially wholly owned private entity to develop, finance, build, operate and maintain the ATMP.

Under the Public Private Partnership Act 2020 (Act 1039), MoF is providing ATEL with viability gap funding in the form of a construction grant as initial financial support for the Project. This is GoG’s intervention to ensure tolls are affordable to the Ghanaian road user and also ensure commercial viability for investors. GIIF is also providing initial equity to ATEL for the accelerated delivery of the ATMP.

ATEL provides a ring-fenced limited liability company incorporated as a vehicle to deliver the Project as a Public Private Partnership (PPP).

ATEL, post construction of the road will sell down a significant portion of its equity to institutional investors, such as pension funds, which require safe and secure long-term investments.

This PPP structure provides transparency, accountability, risk sharing, and a clear legal and institutional framework. ATEL is leveraging private sector expertise and capital (without a sovereign guaranee) to deliver the ATMP infrastructure, in an efficient and value for money driven way.