Government seeking strategic investor in Ghana Airways

Accra (Greater Accra) 8 Jan. '99

The Ghana government is seeking a strategic investor to take a significant stake in the management and control of the national carrier, Ghana Airways. The remaining shares will be sold on the stock exchange with the government holding a small percentage, Mr Edward Salia, Minister of Roads and Transport said on Thursday. He was launching the ''Investment Opportunities in the transport sector'' on GhanaNet TV as part of government's efforts to attract foreign investment. He said private air operators are being encouraged to operate domestic and sub-regional services to feed international airlines. Areas that need private participation in the transport sector are aviation, maritime, railways and road transport. GhanaNet TV, a network provided by Ghana classifieds, features news bulletins, entertainment and other programmes of Ghana Television, TV3 and Metro TV on the worldwide web for Ghanaians abroad as well as individuals and organisations. Mr Salia said due to the huge capital outlay involved in the development and maintenance of road network, ''there is the need for the injection of private capital to meet the shortfall". This, in addition to government's efforts, will promote the timely implementation of projects in the five-year Road Strategic Programme. Mr Salia explained that while private financing would be needed to implement the Build, Operate and Transfer (BOT) schemes covering at least 1.000 kilometres of roads in various parts of the country, investors would build toll on the roads for an agreed number of years and transfer the roads to government. The minister said the policy of "liberalised skies" requires institutional reform of the Ghana Civil Aviation Authority (GCCA) which will focus its activities on its core responsibility as an independent regulatory authority. Airport development, operations and management will be undertaken by the airport authorities while the private sector will be required to establish, develop and manage various business units under the reform On maritime transport, Mr Salia said government is allowing private sector participation in port operations and direct investment in the provision of port infrastructure. He said development required in the Tema and Takoradi ports include dredging of berths from an average depth of 10 to 12 metres to receive bigger vessels. A specialised container terminal will be developed at Tema while two new specialised dry bulk berths to support expected increase in the export of manganese and bauxite will be developed at Takoradi. Also to be developed at Takoradi are a new 500-meter quay with two to three new berths for handling containers and mixed cargo for exports and imports. Mr Salia said private sector investment is required to establish inland ports at Kumasi and Buipe to support the container traffic inland and to Burkina Faso and Mali. Mr Salia assured prospective investors in the roads and transport sector of skilled labour, experienced and qualified middle level and management personnel.