A historic project aimed at expanding the Kotoka International Airport (KIA) to accommodate aircraft of varying sizes, including the largest commercial airplanes globally, has been suspended indefinitely due to delayed funds release by the Ghana Airports Company Limited (GACL).
The project, valued at $57.44 million, was intended to create space for more aircraft and was undertaken by the contractor, Messrs Amandi Holding Limited. However, operations on the site have been halted after completing about 31% of the work due to delayed payment.
Funding for the project was supposed to come from the internally generated funds (IGF) of the GACL, but the delay in honoring payments has led to the suspension of construction activities. The Managing Director of the GACL, Yvonne Nana Afriyie Opare, confirmed that the project would resume once funds become available, with the original completion date now being revised.
“The original completion date was August 21, 2022. The revised completion date is to be determined subject to the availability of funds,” the RTI response stated.
The suspension of the project has been attributed to the impact of the COVID-19 pandemic on the IGF of the Airports Company. The revenue collected from air travel and other airport usage was significantly affected by the pandemic, causing financial stress on the GACL.
An international aviation expert, Sean Mendis, commented on the situation, noting that the suspension was expected due to the pandemic’s impact on airport revenues. However, he expressed hope that the revenues would recover in 2024, enabling the project to resume.
“The revenue collected by the GACL from air travel and other usage of the airports was blocked in 2020 following the suspension of commercial flights for six months as part of restrictions on movement to contain the spread of COVID-19.
“The apron project is fortunately not an immediate priority from a safety or critical infrastructure perspective at this time.
“We have seen that 2023 numbers are back to pre-pandemic level for international traffic, so hopefully the 2024 revenues of the GACL will increase significantly in order to refocus on the project,” Mr. Mendis added.
Contrary to this view, a banking consultant, Dr. Richmond Atuahene, argued that the project delay was due to the failure to address cost or budget overruns before commencing work on the site. He emphasized the importance of resolving cost overrun risks in project financing to prevent delays or failure.
“Unfortunately, who in this world will loan money to Ghana and its agencies, given our difficult economic condition. Therefore, another option available is for the government to intervene and raise revenue locally to complete the project.”
“It has become a dicey situation which requires a strategic solution because the project cannot be suspended forever,” he added.
The project, initiated in 2019, aimed to construct ten parking or apron stands, extend the parallel taxiway, install aeronautical ground lighting, construct service roads, and construct perimeter walls, among other works. The expansion was intended to increase KIA’s capacity to accommodate more aircraft, aligning with the government’s vision to make Ghana the aviation hub of West Africa.
