A Policy analyst at IMANI Ghana is questioning the reasonableness of an agreement which will see 20 years of Ghana's oil proceeds mortgaged for affordable houses to be built by South Korean construction firm, STX. Kofi Bentil insists the agreement is inimical to the interest of Ghana. Government entered into a $10 billion agreement with STX for the construction of 30,000 affordable houses in Ghana. Part of the houses will be allocated to the security personnel when completed.
The deal forms part of government's pledge to solve the problem of housing deficit confronting the people of Ghana. Under the agreement, the government will have to pay an amount of $4.5 billion upfront before the construction will begin and an amount of $12.5 million as management fee. A policy think-tank Danquah Institute has been vocal in its objection to the agreement and Mr. Bentil believes the institute's arguments are valid. Speaking to Joy News' Araba Koomson on Thursday, Mr. Bentil believes the agreement is perverse and the economy cannot sustain it.
"Ghana does not have $4.5 billion to spend. Even if we borrow that money and spent it, we will be financially bankrupt," he emphasised. According to him, a clause in the agreement stipulates that Ghana's oil revenue will be mortgaged for 20 years to defray the cost of the construction. That, he said is unacceptable. Each house per the agreement will cost $60,000; an amount Mr Bentil contends would better serve the people if given to Ghanaian contractors to build the houses.
He dismissed suggestions that STX is financially sound and will fund part of the project, saying, no where in the contract shows that STX will fund part of the construction or even have the means to raise money for the construction. "If we don't have $4.5 billion, why do we take that money and give it to a foreign distressed Korean construction firm when Ghanaians clearly have shown the capacity to do construction," he lamented.
