Ghana reported a net liability of US$2 million paid in 2019 as a premium to acquire ordinary shares for the development of the Accra Sky Train Project.
This is stated in the Auditor General’s report on the Public Accounts of Ghana’s Public Boards, Corporations, and Other Statutory Institutions for the Fiscal Year Ended December 31, 2021.
According to the report, Africa Investor Holdings Limited established a Special Purpose Vehicle (SPV) in Mauritius in order to establish Ghana Sky Train Limited, which will develop the Accra Sky Train Project through a concession on Design, Build, Finance, and Operate.
According to the Auditor General’s report, the Ghanaian government paid Africa Investor Holdings Limited US$2 million as full consideration for 10 ordinary shares in Ai Sky Train Consortium Holdings at $1.00 per share through the Ghana Infrastructure Investment Fund (the SPV).
As a result, the premium paid for each share was $199,999.
On December 31, 2020, the SPV reported a net liability.
The Ai Sky Train Consortium Holdings has yet to obtain the ‘Aeromovel Technology’ license required for the Sky Train Project.
Feasibility studies to better inform project economics and required approvals from Ghana’s Cabinet and Parliament are still underway.
The Auditor General stated that the investment in the SPV would not be repaid if the Accra Sky Train Project was unable to obtain licensing, as well as Executive and Parliamentary approvals.
“We urged Management to continue monitoring the feasibility and recoverability of the SPV investment and to make the necessary provisions based on the results of the feasibility studies.” “Management took note of the recommendation for compliance,” the audit report stated.
Background
In November 2019, the government signed the Concession Agreement for the Accra SkyTrain Project.
The proposed Accra initiative called for the development of five routes, four of which would have been radial routes beginning at the proposed SkyTrain Terminal in the heart of Accra, at a newly developed Kwame Nkrumah circle, and one route providing an intra-city commuter loop distribution service.
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The Project envisioned a total track length of 194 kilometres across all routes.
It was expected to relieve Accra’s growing traffic congestion and boost economic activity in the capital city.
‘There will be no sky train in Ghana; it is not possible,’ says Amewu.
The project has yet to be implemented because the current Minister of Railway Development, John Peter Amewu, recently stated that the government would be unable to build any sky train in the country.
“The sky train in question is one that will run on columns in the sky like the ones seen in Dubai, but no agreement has been signed.”
“It is not possible right now.” I don’t see a sky train being built in the next three to four years. There will be no Sky train service in the country. It is not possible,” Amewu stated in a Citi News interview.
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