End of debt restructuring paves way for £59m phase 3 of Kumasi Airport Expansion works | By Dominick Andoh The successful completion of Ghana’s debt restructuring programme now paves way for the release of funds to complete the Phase 3 of the Kumasi Airport redevelopment project.
Phase 3 of the Kumasi Airport expansion project involves the extension of the existing runway pavement from 1,981 meters to 2,320 meters, construction of new taxi link and two Apron Parking Stands, an Air Traffic Control Building, and a Fire Station among others. The cost for this phase is about 59 million Pounds. The completion of this phase is crucial to attract major international airlines, which operate wide body aircraft, to the airport renamed after the famous Asante King, Prempeh I.
Struggling to meet various domestic and international debt obligations, a depreciating local currency and a general economic squeeze post the pandemic, Ghana turned to the International Monetary Fund ( IMF) for a bailout .
As part of a deal with the Fund to reduce its debts from about 109 percent of GDP to a much more manageable 55 percent, the West African country embarked on a debt restructuring exercise.
The release of funds for major projects such as the Kumasi Airport Redevelopment Phase 3 was temporarily suspended pending the outcome of the negotiations with the external creditors.
A chaotic domestic debt exchange programme was concluded at the end of last year. The much more difficult task of renegotiating its debts with external creditors has taken months.
Speaking at a town hall meeting in London, Ghana’s finance minister, Mohammed Amin Adam, said negotiations with the external creditors have been concluded with enormous savings made to be channelled into major projects such as the Kumasi Airport.
“Last two weeks, we concluded negotiations with the official creditors, and we have agreed to restructure 5.1 billion dollars. I am telling you that the government is good in negotiations and of this amount, we are going to make savings of $2 billion,” he told the meeting.
“……we have also concluded our negotiations with the Eurobond Holders of $13.1 billion, and ladies and gentlemen, when we announce it, please read the details. We have negotiated a good deal for Ghana and that is $8 billion,” he added.
The Kumasi Airport is currently served by two domestic carriers namely: Africa World Airlines (AWA) and Passion Air. The Project Contractor is Messrs Contracta Construction UK Ltd.
Simulation exercise, July 1, opening
The Ghana Airports Company Limited says it will officially open the new terminal building at the Prempeh I International Airport, Kumasi to both domestic and international flights effective July 1 after a five day simulation exercise at the facility to test all systems in place. Read the Press Release below:
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