Parliament has approved a US$56,000,000 United Kingdom Export Finance (UKEF) Facility and US$ 24,000,000 Tied Commercial Facility Agreements between Ghana and the KFW IPEX-Bank GMBH for the design and construction of the second phase of the Tamale International Airport.
The chairman of the Finance Committee and Member of Parliament for New Juaben South, Dr. Mark Assibey Yeboah, pointed out that the government, through the Ghana Airport Company Limited (GACL) intends to upgrade the Tamale Airport to be able to handle international operations.
He explained that the Tamale Airport is proposed to be an alternative to the Kotoka International Airport in Accra.
Dr. Assibey-Yeboah disclosed that the government intends to use the Tamale Airport to support the programme of the Northern Development Authority as well as a base for seasonal direct Hajj flights between Ghana and Mecca in Saudi Arabia.
He again added that the second phase of the development will include the construction of a modern international Airport terminal, a Hajj Facility and development of a modern infrastructure for all aviation and relevant non-aviation facilities.
*The Finance Committee’s report on the loan facility agreements*
The objective of the project is to design and construct the second phase of the Tamale International Airport Project pursuant to the overall vision and strategy for the short to medium-term development of the airport with a well-balance mixed of business, commercial, industrial, sports and recreational facilities.
Under the Terms and Conditions of the UKEF Facility Agreement, the total amount is $56,000,000, which includes an estimated insurance premium of $7,480,000.
Interest rate on the facility is 1.7 percent per annum and the commitment fee per annum is 0.70 percent. Structuring fee covers 0.50 percent flat rate.
The grace period for the agreement is 2 years and 5 months while the repayment period is 10 years.
The Tied Commercial Facility amounts to $24,000,000 including a risk mitigation fee of $2,520,000. Interest rate on the commercial facility is 5 percent per annum, the commitment fee is 1.6 percent and the structuring fee is 1.25 percent flat rate.
The grace period for the agreement is 2 years and 5 months while the repayment period is 3 years and 5 months.
Phase two of the project will cover Passenger Main Terminal, Hajj Facility, Access and Secondary Roads, Water, Power and Sewage Infrastructure.
On the benefits of the project, the airport is to be developed to have a well-balanced mix of business, commercial, industrial, sports and recreational areas and facilities. The airport is expected to catalyse industrialisation and rapid socioeconomic development.
The Tamale Airport is expected to promote domestic air travel and to open up the enormous potential growth of traffic in domestic and regional routes.