Gov’t taps GIIF to construct Agenda 111 hospitals, others
The Government is banking its hopes on its investment vehicle; Ghana Infrastructure Investment Fund (GIIF) to help invest and construct one of the ruling NPP’s administration flagship project, -Agenda 111 hospitals in remote areas of the country, Finance Minister, Ken Ofori-Atta has revealed to parliament.
According to the minister, the government has already transferred GHS 1,695,524,797as at the end of March 2023 towards this project.
As a hundred percent (100%) GoG-owned investment vehicle with strong technical skills and expertise, GIIF offers government opportunities to help execute its infrastructure agenda.
Towards this, he said “GIIF is exploring avenues to execute the following commercially sustainable solutions: a) Health sector (Agenda 111): The government has requested that GIIF assist in the flagship project to construct 111 District and regional hospitals. GIIF’s role will be to help ensure administrative and project management efficiencies as well as payment integrity throughout the process.”
The finance minister announced in a statement read on his behalf by the Minister of State at the Ministry of Finance, Dr Amin Adams, on the floor of Parliament on Tuesday.
He was responding to a question posed by the MP for Tolon, Habib Iddrisu, who enquired from the minister how much has been realized from the Ghana Infrastructure Investment Fund (GIIF) which seeks private sector investments for infrastructural development, and what material gains and projects can be identified as products of the Fund.
“we will continue to reposition GIIF to play its strategic role and advance the mission to transform the infrastructural landscape of the country,” he noted.
The Fund is a permanent capital investment vehicle, initially capitalized at US$250 million, with a mandate to identify, develop, mobilize, and manage investments in a diversified portfolio of infrastructure assets in Ghana, in a profitable and sustainable way.
It was initially structured to receive annual allocations from the GoG budget (VAT and ABFA).
GIIF is flexible in the instruments of financing it can use, from equity to debt, and any other hybrid instrument.
Since 2017, the government have continued to support efforts in raising capital for GIIF. The total ABFA received to date is US$75 million.
GIIF has also received an additional US$20m from the Government of Ghana at the end of 2021 to support specifically, the purchase of shares in the African Finance Corporation (AFC). Hence total fund size is now US$345m.
The government has also supported GIIF to secure: US$85m from the French Development Agency (AFD); US$75m from African Development Bank (AfDB); GHS 1,695,524,797from ABFA to support Agenda 111:( already transferred); US$380m from ABFA (earmarked) for Tema-Accra motorway Construction
Only last month, it was disclosed by Information Minister, Kojo Oppong Nkrumah, that 88 hospitals out of ‘Agenda 111’ are currently under construction.
The project, which involves the construction of 111 hospitals, was inaugurated by President Nana Akufo-Addo on August 17, 2021, with a promise to complete the work within 18 months.
GIIF has used its initial funds very efficiently and in a very short time, has committed US$332 million in a portfolio of 13 infrastructure projects in seven different sectors, including airports, seaports, ICT, energy, hospitality, mining, and recently affordable University accommodation.
