Business News of Tuesday, 9 February 2016

Source: B&FT Online

Mahama wants more PPPs

President John Dramani Mahama President John Dramani Mahama

President John Dramani Mahama has called for the use of local entrepreneurs, through Public Private Partnerships, in solving the myriad problems facing the country.

Speaking at a ceremony organised by waste management company Zoomlion to present 400 waste trucks and 5,000 motorised tricycles to Metropolitan Municipal and District Assemblies (MMDAs), the President added that government alone cannot solve all the problems -- thus calling for the assistance of local entrepreneurs in solving problems like waste management.

“Government alone cannot manage the country’s waste considering the fast-growing urban centres and current percentage population of Ghanaians living in the urban centres is 53 percent -- being more than half of Ghanaians.

“This creates the need for generating a system and an even more modern scientific approach to promote a greener Ghana, thus the decision to engage in Public Private Partnerships with the likes of Zoomlion and Jospong Group of Companies to help in the area of waste management and sanitation,” he said.

Ghana’s infrastructure deficit requires a sustained investment of US$1.5billion annually for 10 years in order to catch up; but with a government that is reducing capital expenditure and paying more interest on debt, only the private sector, through PPPs, can help salvage the infrastructure gap.

In the 2015 budget statement by Finance Minister, Seth Terkper, he outlined that government has allocated an amount of GH¢7billion for capital expenditure; but in in the 2016 budget statment the Finance Minister stated that a total amount of GH¢6.7billion is allocated for capital expenditure, which represents a drop of GH¢300million or 4.3percent.

The President commended Zoomlion for applying science to waste management in the country. Zoomlion has introduced modern waste management equipment such as compaction, skips and the roll-on-roll off trucks.

Recently, major projects such as the Accra and Kumasi Compost and Recycling Plants, establishment of a Waste Management Institute, construction of Waste Transfer Stations, rehabilitation of the Mudor Treatment Plant, and the construction of a medical waste treatment plant are just a few of Zoomlion’s works, the President added.

In paying glowing tribute to Jospong Group and its biggest subsidiary, Zoomlion, President Mahama said the company’s continuous dedication as the leading company in the area of waste management and sanitation is exemplary.

He also urged the MMDAs and waste management companies that were beneficiaries of the equipment to ensure they enjoy extended life.

Considering its proven record over the years and commitment to creating a cleaner and healthier Ghana, the President applauded Zoomlion for creating 75,000 jobs in the country.

Executive Chairman of Zoomlion Group, Dr. Joseph Siaw Agyepong affirmed that the private sector’s growth is fundamental to sustainable development, and the creation of a favourable environment for the private sector yields positive results. “This assertion is amply supported by our accomplishments,” he said.

He stated that this year marks 10 years since Zoomlion started its operations with a passion to help foster good sanitation practices in our communities, and to support government to achieve a high standard of sanitation nationwide.

Dr. Agyepong indicated that the cost of the items, US$50million adds no cost to government’s debt since the facilities were secured through an arrangement with the manufacturers.

“These tricycles are particularly useful for high-density communities and areas prone to indiscriminate waste disposal practices. This innovation will generate between 5,000 and 10,000 jobs at a time.”

He added that in collaboration with KNUST, Zoomlion has established the KNUST-Africa Institute of Sanitation and Waste Management to build the capacity of personnel in waste and environmental sanitation management at university level.

The Executive Chairman also commended government for creating an environment that enables private sector innovations to succeed.

Dr. Agyepong appreciated the institution of National Sanitation Day (NSD) and seized the opportunity to affirm Zoomlion’s commitment to supporting this initiative -- explaining how it has provided logistical support as well as personnel to participate in the NSD since its inception.