FLASHBACK: Accra Sky Train project: GoG bought $2m shares in Mauritius company – A-G

The Accra Sky Train project which has now become a net liability was funded with some $2 million in 2019.

This was done by buying shares in a Mauritius company, the 2021 audit report on the Public Accounts of Ghana's Public Boards, Corporations, and other Statutory Institutions.

The $ 2 million was to be used to set up the Sky Train company which will be used to develop the project.

The project is currently in limbo.

Read the full story originally published on September 4, 2022 by GhanaWeb

The Auditor-General has stated that the Government of Ghana, GoG, in 2019, paid a whopping US$2 million as a premium to acquire shares in the Sky Train company established in Mauritius.

According to the 2021 audit report on the Public Accounts of Ghana’s Public Boards, Corporations, and other Statutory Institutions, the buying of the shares, was for the development of the Accra Sky Train Project which has now been reported as a net liability.

In the audit report, it was established that Africa Investor Holdings Limited incorporated a Special Purpose Vehicle (SPV) in Mauritius, was to establish the Ghana Sky Train Limited, in other to develop the Accra Sky Train Project through a concession on Design, Build, Finance and Operate arrangement.

The Auditor General said the payment of US$2 million by the Government of Ghana through the Ghana Infrastructure Investment Fund was full consideration for 10 ordinary shares at US$1.00 per share in Ai Sky Train Consortium Holdings (the SPV). Thus, the premium paid for each share was US$199,999.

The SPV reported a net liability on 31 December 2020.

Ai Sky Train Consortium Holdings, the Auditor-General noted that, is yet to obtain the licence for ‘Aeromovel Technology’, required for the Sky Train Project.

The Auditor General stressed the US$2 million investment in the SPV could not be recovered if the Accra Sky Train Project is unable to secure the licencing, and the Executive and Parliamentary approvals.

“The feasibility studies which will better inform the project economics and required approvals from the Cabinet of Ghana and the Parliament of Ghana are still not conclusive,” the Auditor-General said.

The A-G further advised in his report that the management of the Fund should take steps towards “finalisation and approval of the risk management policy by the Governing Board for implementation.”

“We urged Management to continue to monitor the feasibility and the recoverability of the investment in the SPV and make the necessary provisions based on the outcome of the feasibility studies. Management noted the recommendation for compliance”, the audit report recommended.

The Sky Train project was first announced by President Nana Addo Dankwa Akufo-Addo in 2017, but an assessment of GIIF’s risk management issues reveals that the policy is still in the draft stage.

In 2018, Africa Investor Holdings Limited incorporated a Special Purpose Vehicle (SPV) in Mauritius to establish the Ghana Sky Train Limited to develop the Accra Sky Train Project through a Design, Build, Finance and Operate arrangement.

John-Peter Amewu, Minister for Railways Development, had stated that the Akufo-Addo-led government will not be able to provide Ghanaians sky trains as earlier indicated.

“The sky train that we are talking about is the one that is going to run on columns in the sky like the ones you see in Dubai but no agreement has been signed.

“It is not possible to be done now. I don’t see any sky train being done in the next 3-4 years. There is not going to be any Sky train in the country. It is not possible,” Amewu said in a Citi News interview in November 2021.

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