MPs votes in of favour $20.9m tax waiver for phase two of Tamale Airport
April 03, 2020
Members of Parliament (MPs) have voted in favour of a $20,953,066.69 tax waiver for the purchase of materials, equipment and vehicles to construct the second phase of the Tamale International Airport.
The first phase of the redevelopment the Tamale Airport was completed in 2016, and KfW IPEX-Bank GmH has agreed to finance the phase two.
Parliament, on July 24, 2018, approved by resolution, the commercial contract agreement for the design and execution of the works between the Government of Ghana and QG Construction Limited, a United Kingdom (UK)-based construction firm with local presence in the sum of $70 million for the phase two.
Contract agreements
Portions of the contract agreement specified that the contract price wil not include any taxes, duties and fees due the nation, and therefore puts the liability for the payment of taxes on the Government.
The $20.95 million waiver request is made up of US$1,2 million for local purchases and US$19.7 million for the importation of materials, equipment and vehicles for the Tamale Airport project.
Government says the upgrade will allow the airport to handle international operations,
It added that it is in line with Ghana Airports Company’s strategic decision to make the Tamale Airport an alternative to the Kotoka International Airport (KIA) in Accra.
Again, government says it intends to use the project to support the programmes of the Northern Development Authority as well as a base for direct seasonal Hajj (pilgrimage) flight between Ghana and Mecca in Saudi Arabia.
Domestic air travels
When completed, the project will promote domestic air travel and support KIA’s quest to become the gateway and an aviation hub in the West Africa Sub-Region.
Government indicated that the airport would also promote eco-tourism and cultural tourism by facilitating domestic and international travels for the exploration of the national historic heritage of the Savannah Region.
Meanwhile, government has reiterated its committed to constructing an airport in every region to boost domestic travels
It adds that the ongoing rehabilitation works at the Sunyani Airport, which is expected be completed by the end of May this year, is a testament to that Government’s resolve to boost domestic air travels.
Minister of Aviation, Joseph Kofi Adda, was said to have told the Finance Committee that the project, when completed, would be able to accommodate flights such as Passion Air and other non-jet flights.
“Unfortunately, the runway at the Sunyani airport is about 1,350m whilst jet powered aircraft require runways stretching in excess of 1,700m.
