A deputy Minister of Finance, Mr Cassiel Ato Forson, has charged state-owned enterprises (SOEs) to explore the use of public/private partnerships (PPPs) to finance their upgrading or expansion projects, instead of relying on government guarantees for loans to support those projects.
In the past, the government absorbed the debts of SOEs and that reflected in the public debt. However, going forward, SOEs are required to underwrite their own debts by borrowing on their own financial strength (balance sheet), so that the government’s debt position does not worsen.
“Going forward, instead of relying on government guarantees, we want to encourage PPPs, such as what you did with MPS. We encourage you to use such models to develop the port and, where necessary, the government will come in,” Mr Forson said when he received a cheque for GH¢4 million from the Ghana Ports and Harbours Authority (GPHA) in Accra on Monday.
Dividend
The GPHA dividend was in respect of 2014. The last time the authority paid dividend was in 2009. The GPHA, which has been engaging in expansion works at the country’s second largest port, the Takoradi Port, and signed an agreement with MPS Services to expand the
Tema Port, is hoping that its activities will, in the future, yield more revenue for the government, especially when the expansion works are completed. “We are very much aware of some of the challenges you go through at the ports to develop them and realise higher incomes. We will be working closely with you, as we’ve done in the past, to support the ports to invest,” Mr Forson stated.
He said it was gratifying that in spite of the challenges the ports were saddled with, the GPHA was able to pay dividend and expressed the hope that other SOEs would soon turn around their operations and declare dividends. The port authorities were led to the Finance Ministry by the Transport Minister, Mrs Dzifa Attivor, who said in spite of challenges at the ports, activities and services continued to grow. “The GPHA has embarked on massive infrastructural development at the ports and we hope subsequent cheques will be higher,” she said.
Good performance
The Director-General of the GPHA, Mr Richard Anamoo, said the authority had been performing effectively, in spite of the challenges, even complying with statutory requirements such as paying duties on imported machinery and taxes. The authority, he said, also had the responsibility of paying up all loans procured for its investment activities.
“We will continue to put in the necessary measures to ensure that we can increase productivity and, consequently, revenue. The measures should reduce cost and maximise profit,” Mr Anamoo said, adding that a large portion of the port’s revenue was reinvested in port infrastructure.
Source: Graphic