A Project Management expert at the Ghana Institute of Management and Public Administration (GIMPA) has advocated for the use of pension funds for infrastructure projects.
Professor Martin Morgan Tuuli observed that the use of foreign loans for such purposes comes with unfavourable conditions.
“When we go for loans to fund infrastructure, it comes with a lot of conditionalities.
“What funds exist domestically that we can access, and that’s our pension funds,” he said.
Prof.Tuuli was speaking at the 11th Sustainable Education and Development Research Conference 2022 in Kumasi.
According to reports, Ghana has a 44 million dollar infrastructure gap.
However, Ghana sits on a GH¢22 billion-cedi pension fund.
Prof.Tuuli said having innovative infrastructure financing ideas will be important in closing the gap.
He believes developing capacity at the local governance level will be key in realising these projects.
“Most of the infrastructural needs are at the local levels, yet to a large extent, these infrastructure are initiated at the central governmental levels.
“Is it possible for us to work through the PPP law to develop the capacity of assemblies and municipal bodies to bridge the infrastructural gap?” he asked.
He however, said it must be properly structured to ensure good returns.
“They’re borrowing this money to fund its infrastructure and the terms are clear and the returns the government is supposed to pay will be clear,” he said.
“Most of the infrastructural needs are at the local levels, yet to a large extent, these infrastructure are initiated at the central governmental levels.
“Is it possible for us to work through the PPP law to develop the capacity of assemblies and municipal bodies to bridge the infrastructural gap?” he asked.
He however, said it must be properly structured to ensure good returns.
“They’re borrowing this money to fund its infrastructure and the terms are clear and the returns the government is supposed to pay will be clear,” he said. – Myjoyonline.com
