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Govt spent $2m on botched sky train project – Auditor General’s report

The 2021 Auditor General’s report has revealed that the government of Ghana has spent $2 million on the sky train project.

Skytrain

According to the report, government invested the amount in10 ordinary shares in the Special Purpose Vehicle (SPV) of Ai Sky Train Consortium Holdings.

But an assessment of GIIF’s risk management issues reveals 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.

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

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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.”

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.

This monumental infrastructure announced by President Akufo-Addo had its plan drafted back in 2017.

However, the Minister for Railways Development, John Peter Amewu hinted that the incumbent government will not be able to provide Ghanaians sky trains as earlier indicated.

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According to him, even in a few years to come, this project cannot be implemented because it requires a significant amount of capital and government does not have the fiscal space to absorb 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.

The 2021 report by the Auditor General indicated that not much has been seen in terms of feasibility studies regarding the project.

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