Govt still interested in viable Accra Sky train project- CEO of GIIF tells PAC

The Chief Executive Officer (CEO) of the Ghana Infrastructure Investment Fund (GIIF), Solomon Asamoah, has told the Public Accounts Committee (PAC) of Parliament that the government is still interested in investing and implementing the Accra Sky Train project due to potential viability of the project.

He said the government had already invested $2 million with the Africa Investor Holdings Limited for the feasibility study of the public-private partnership project and steps were being taken for the early completion of the study.

“That is the intention that we are still following and the government is still interested in investing in the project because the fundamental reasons for the project still exist and the feasibility showed the project is potentially viable,” he said.

Potential solution 

Appearing before the PAC in Parliament to respond to some questions raised in the 2021 Auditor-General report on GIIF, Mr Asamoah said: “Everybody lives in Accra and the potential solution for the congestion that happens on our roads is the Sky Train project and we will like to proceed with it.

“The changes in the macroeconomic environment of Ghana and the outbreak of COVID-19 delayed the project, making it a little bit challenging for the takeoff. But we still believe in it and we have spoken to funders and we are still in touch with potential financers who still believe in the project and in the right time we will still like to move forward,” he said.

A-G’s concerns

Per the A-G’s report, the Fund paid $2 million on February 25, 2019 to Africa Investor Holdings Limited as full consideration for 10 ordinary shares at $1 per share in Ai Sky Train Consortium Holdings (the special purpose vehicle). 

The report said Ai Sky Train Consortium Holdings was yet to obtain the licence for ‘Aeromovel Technology’, required for the Sky Train Project. 

Feasibility studies which will better inform the project economics and the required approvals from the Cabinet of Ghana and the Parliament of Ghana are still ongoing and that the investment in the SPV could not be recovered, if the Accra Sky Train Project was unable to secure the licensing, and the Executive and Parliamentary approvals.

Mr Asamoah appeared before the committee together with a Deputy Minister of Finance, Abena Osei-Asare, and the Deputy CEO of GIIF, Catherine Quiadoo, to respond to questions contained in A-G’s report.

Extensive due diligence

The CEO of GIIF said Ai Investor Holding Limited was a consortium of different partners based in South Africa. 

 He said a delegation from consortium approached the Ministry of Railway Development back in 2017/2018 to engage the Ministry on how to fulfil the project.

He said the Fund carried out “extensive due diligence” into the project feasibility in order to get returns on the Sky Train project.

“We even hired our own consultants to help us with the due diligence and it was very extensive work that was done to know that the project is viable before we made the investment decision,” he said.

Mr Asamoah indicated that there was an initial feasibility study that was done by the original consortium to prove the concept of the project

When the Chairman of the PAC, Dr James Klutse Avedzi, asked if the GIIF would be able to recover the $2 million investment from Ai Holding Limited or it would push for the study to be complete and the taking off of the project, Mr Asamoah retorted “Yes sir”.