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Auditor-General: $2 million was spent on the $3 billion Sky Train project, although the feasibility studies were inconclusive.

According to reports, the government invested around $2 million in the Sky Train project.

According to the Auditor-General, this was accomplished through the purchase of 10 ordinary shares by the Ghana Infrastructure Investment Fund in the Special Purpose Vehicle (SPV), Ai Sky Train Consortium Holdings, valued at the specified sum.

The plan for this enormous infrastructure, which President Akufo-Addo recently disclosed, was created in 2017.

GIIF’s risk management difficulties, however, are evaluated, and it turns out that the policy is still in the draft stage.

“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.

These were detailed in the Auditor General’s Report on Ghana’s Public Accounts for the fiscal year that concluded on December 31, 2021.

A Special Purpose Vehicle (SPV) was formed in Mauritius in 2018 by Africa Investor Holdings Limited to create Ghana Sky Train Limited, which will design, build, finance, and operate the Accra Sky Train Project.

John Peter Amewu, the minister for railway development, has already intimated that the current administration won’t be able to offer Ghanaians sky trains as previously predicted.

He claimed that even in a few years, this project cannot be completed since it needs a sizable amount of funding and the government lacks the financial capacity to support such a facility.

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

Prior to Peter Amewu’s remarks, Transport Minister Kwaku Ofori Asiamah had stated during the ministerial vetting process that the government’s plans to build the sky train project as a mode of transportation in the nation are still in the planning stages.

Mr. Asiamah informed the Appointments Committee, which was led by Chairman Joseph Osei Owusu, during his vetting on February 23, that his office and the Railways Ministry had spoken with a number of potential developers who had expressed interest in working on the project.

But according to the Auditor General’s report from 2021, there haven’t been many feasibility evaluations on the project.

The A-G said it has already advised the management of the Fund to take steps towards “finalization and approval of the risk management policy by the Governing Board for implementation.”

The report subsequently urged management to “continue to monitor the feasibility of the investment in the SPV and make the necessary provisions based on the outcome of the feasibility studies.”

Meanwhile, despite receiving the money in February 2019, the SPV, Ai Sky Train Consortium Holdings, is yet to obtain a licence for “Aeromovel Technology’ required for the Sky Train Project.

GIIF was found to not have certificates of ownership for the equity investments in three companies totalling ¢146.6 million.

“We advised Management to take steps to obtain the appropriate certificates for all its investments.”

The $3 billion concession agreement was signed by the government in November 2019 with the South African company Africa Investment (Al).

Construction was aimed at lessening Accra’s traffic congestion, and it was scheduled to start in January 2020.

Disclaimer: The opinions expressed in this publication do not in anyway reflect the opinions of State News Ghana

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