Road Fund generates trillions of cedis for government

Sunyani, Feb. 22, GNA - The Road Fund generated total revenue of 4.618 trillion cedis between 2000 and 2006.

This year a projected amount of 1.4 trillion cedis would accrue to the fund to enable it to meet the road maintenance budget of the agencies that subsist on the fund to undertake their maintenance programmes and activities.

Mr. Magnus Opare-Addo, the Deputy Transportation Minister, said this at a public forum on financing road maintenance organized by the Ghana Road Fund Secretariat in Sunyani on Thursday.

He said it was heartening to note that revenue accruing into the fund had consistently increased from 248 billion cedis in 2000, 377 billion in 2001, 409 billion in 2002 and 682 billion cedis in 2003. The revenue increased from 765 billion cedis in 2004 to 1,050 billion cedis in 2005 while in 2006 a total amount of 1,087 billion cedis was generated by the fund, Mr. Opare-Addo said.

He said the government was studying some recommendations that had been made by the ministry that seeks to make the fund more responsive to road maintenance.

The government is also examining other financial methods such as the issuing of bonds on the stock exchange to provide funds for road maintenance.

The Deputy Minister said it was incumbent on all to support the fund to ensure that all the collectible revenue under the various items collected and judiciously applied to the maintenance programmes of the agencies and departments that subsist to the fund.

"This can be done through regular and prompt payment of levies and fees which go into the fund. We must always insist especially our commercial drivers to obtain receipts for any fee and tolls we pay which we know will go into the road fund", Mr. Opare-Addo said.

Mr. Opare-Addo said for 2006 fiscal year, about 33 percent amounting to 4.6 trillion cedis of the total investment budget was devoted to road construction and maintenance.

Studies conducted in the country from 2004 to 2005 indicated that completed and maintained roads led to 20 percent increase in trips to hospital, 65 percent lowering of costs of travelling to market centers, 41 percent reduction in costs of travelling to welfare facilities and 23 percent increase in the price of maize received by farmers. Mr. Ignatius Baffour-Awuah, the Brong-Ahafo Regional Minister, said the deplorable condition of some roads in the region especially during the rainy season was a big source of worry to the chiefs and people of the region.

He appealed to the road fund secretariat to hasten the rehabilitation of some roads in the region to facilitate the rapid evacuation of agricultural produce to marketing centers. Mr. Baffour-Awuah said the region had a total road network of 6,846 kilometer, the bulk of which was in fair condition.

He said there was an urgent need to support the road fund while efforts were being made by government to solicit donor funds for the development of the road sector. 22 Feb 07