Flagbearer of the ruling New Patriotic Party (NPP) has unveiled plans to alleviate budgetary burdens and enhance efficiency through private sector collaboration.
Dr. Mahamudu Bawumia has proposed a strategic partnership with the private sector to address the massive demand for road construction and public service provision in Ghana.
According to available data, Ghana’s road network is estimated at 100,000Km.
National Road length as at 2022 is 94,203km. However, 72% of the roads in Ghana have no bitumen on them which translates to 68,000km, while 47% of urban roads are good 32% is fair but 21% poor.
Speaking at the University of Professional Studies, Accra (UPSA), Dr. Bawumia emphasized the need to alleviate the budgetary strain caused by infrastructure development.
He stressed that traditional financing methods have placed a heavy burden on the national budget.
“I believe that the private sector should finance the construction and maintenance of roads through PPP concession arrangements,” stated Dr. Bawumia, outlining his vision for public-private partnerships in infrastructure development.
In addition to road construction, Dr. Bawumia announced plans to shift towards leasing, rather than outright purchasing, vehicles, printing equipment, and other assets.
The private sector will assume responsibility for equipment maintenance, resulting in significant cost savings for the government.
“This policy will energize the private sector and create many jobs,” Dr. Bawumia affirmed, underscoring the potential economic benefits of increased private sector involvement in public service provision.
Moreover, Dr. Bawumia emphasized the broader implications of enhancing private sector participation, including fiscal and administrative decentralization.
He addressed the importance of improving governance systems and institutional efficiency to ensure value for money in procurement.
The proposed reforms, according to Dr. Bawumia, could generate fiscal space equivalent to at least 3% of GDP annually, representing a major paradigm shift in government operations.
Source: Ghana/Starrfm.com.gh/103.5FM/Kojo Ansah
