With an estimated 10 percent growth in domestic and international throughput over the past five years, there is an increasing pressure on aviation infrastructure on the ground.
The company responsible for managing and maintaining all airports and aerodromes in the country, The Ghana Airports Company limited (GACL) has responded to this need and has developed a fine print to address the infrastructural shortfall and boost the growth of the aviation sub-sector.
The Ghana Airports Company Limited (GACL), on the back of posting an impressive GH¢19million profit in 2013, has set for itself ambitious targets in a three-year project to transform the aviation sector.
Central to this is the investment of US$600million over a three-year period to enhance and expand airport infrastructure and services in the country.
Ecobank Ghana is leading a syndicate of banks to provide the funds, of which the first tranche of US$200million is expected at the end of the year. The remaining US$400million will be received by the close of next year.
Charles Asare, Managing Director of GACL, said: “The board approved and we appointed Ecobank as the financial advisor with the mandate to raise the money for us. That money will be used to address our infrastructural needs. The first timeline is by the end of the year. We are expecting US$200million, and then the US$ 400million by end of next year.
Given a new lease of life following the promulgation of the Airport Tax Amendment Act in 2013 – which allows the GACL to retain 100 percent of its revenues – the company’s management has set up a special fund solely for airport infrastructure. It said 70 percent of the revenue from its Airport Passenger Service Charge (APSC) will be kept in the fund to service the loan.
Under the past arrangement, which had been in place since 2001, 60 percent of all airport taxes went directly to the Ghana Revenue Authority to support the national budget -- while GACL retained 40 percent.
“The arrangement has been concluded to enable GACL to retain 100 percent of the APSC,†Mr. Asare said.
“About 15 percent will go to other stakeholders, mainly the Ghana Civil Aviation Authority (GCAA). Of our 85 percent, we have decided internally to keep 70 percent in a fund that will purposely be used for infrastructural development.
“Once we are able to show the banks that this fund is there, they will know that we have the cash flows. I am taking that information to the banks to raise US$600million against those future flows which will be used to service the loan.â€Â
Part of the money will be used to finance ongoing developments at the Kotoka International Airport (KIA). These include expansion of the arrival hall, construction of a new terminal (Terminal Three), re-roofing of the entire terminal building, and installation of two more baggage carousels.
The GACL, holding its second annual general meeting (AGM) in Accra, announced a net profit of GH¢19.1million, compared to a net loss of GH¢84.2 million in 2012.
Domestic passenger throughput during the 2013 financial year grew by 43.3 percent to 780,000 in 2013 from 540,000 in 2012.
International passenger traffic however dropped by 3.3 percent to 1.67million in 2013 compared with 1.72million in 2012.
Mr. Asare said “the growth in domestic passenger traffic is expected to continue and therefore will require additional investments in infrastructure.â€Â
Tamale Airport Upgrade
Rehabilitation and expansion works on the Tamale domestic airport begun last week after the official sod-cutting by President John DramaniMahama.
The first phase of the project consists of the extension of the runway from the current 2,480 metres to about 3,940 metres and the installation of a complete lighting system to accommodate bigger aircraft so as to serve as the second international airport in the country. It is supposed to serve as an alternative to the Kotoka International Airport (KIA).
Mr. James Eric Antwi ,Starbow’s CEO said: “Yes I believe it is very necessary for us to construct an international airport in Tamale because that part of the country needs to be opened up. When we build an international airport in Tamale, it will create a lot of jobs, companies will go there and invest .
“Manufacturing companies can move in because they can get their products easily into Accra. We can grow flowers and export them from Tamale. Flowers fetch a lot of income in most countries that I know. For instance Kenya, Ethiopia and other countries and Northern Ghana is conducive for this business.
I think that if they do it will help a whole lot of people and also with the airlines going there, companies going there, Tamale will just be another commercial centre which will open the door to all countries; Burkina and the surrounding countries,†he said.
Kevin Markette, Lufthansa’s Country Manager believes that it’s certainly a viable project to develop the Tamale domestic airport into an international airport. “Looking at the growth of domestic traffic we have had in Ghana over the last couple of years, I definitely think that up-grading Tamale to handle bigger aircraft is a good project.â€Â
It will certainly facilitate trade with the country’s northern neighbours and whether or not it will have a significant impact on international traffic, is a different story. This will depend on how the Ghana government and the GACL position the Tamale Airport.
Kumasi Airport
Rehabilitation works on the Kumasi runway is progressing steadily. Phase one of the project
involved the construction of a regulating course. The second phase involved an additional layer on the runway (binding and wearing course), and installation of runway lights to allow night operations. Work is expected to be completed in December 2014.
Current length of runway is 1981 metres. There are plans to expand it in the future. the future expansion will also involve the construction of a parallel runway and apron to accommodate more flights to the region.
Expansion of arrivals hall
By December 2014 passengers travelling through KIA will experience some relief from the congestion and long queues that characterise activities at the arrival hall, especially during peak seasons.
Expansion works on Terminal 2 arrival hall is underway. The project began in June 2014 and is expected to be completed by the end of the year. The first phase involves the expansion of the existing arrival hall by 5148m2, provision and installation of two new baggage handling equipment to bring the number of carousels in the arrivals hall to four.
Installation of twenty six immigration booths-- an increase of 14 over the existing 12 booths, and the replacement of air conditioning systems for the benefit of passengers.
Other ongoing projects include the installation of new security systems with ultra modern IP-based real time cameras with video analytics to provide 24 hour surveillance for both airside and landside.
The Phase 3 development project is ongoing and includes the reconstruction of taxiway rehabilitation and extension of fuel mains and the provision of aeronautical ground lighting.
KIA would see some major improvements in the coming months with plans to build a new international terminal to release pressure on the existing one. The design and build concept is expected to be completed by August 2016.
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