The Minister of Roads and Highways, Mr Joe Gidisu, has advocated the imposition of a levy on Liquefied Petroleum Gas (LPG) used as fuel for road transportation.
“Based on the user pay principle for which a levy is charged on petrol and diesel, it is my expectation that consideration and support will be given for a levy to be placed on LPG used as fuel for road transportation," he said.
According to the Minister, with the increasing rate at which vehicles were being converted in order to use the LPG as fuel, thereby causing occasional shortages of the commodity, there was the urgent need to place a levy on it to raise sufficient funds to finance road maintenance.
Mr Gidisu said that in a speech read on his behalf at a public forum organised by the Road Fund Management Board to solicit views on ways to adequately resource and manage the fund in a sustainable manner.
The Minister said the government was exploring other financial methods such as the Build, Operate and Transfer (BOT) system, the Maintain, Operate and Transfer (MOT) system, the, Public Private Partnership (PPP) and the long-term pre-financing, to carry out road maintenance.
He noted that there was a 40 per cent shortfall in the road maintenance budget visvis the revenue the Road Fund generated and stressed the need to find innovative ways of making up for the deficit.
He said the government had secured an GH¢85-million loan facility on behalf of the Road Fund Board to settle arrears owed contractors since 2008, while another GH¢ 109 million had just been obtained to meet the current indebtedness to the contractors.
"Since the beginning of 2010, an amount of GH¢ 156.7 million has been paid to contractors for works done on maintenance contracts which were in arrears," Mr Gidisu said.
The chairman of the Parliamentary Select Committee on Roads and Highways, Mr Michael Boampong, said the country faced a challenge to make the road infrastructure in the country the best.
Mr Boampong noted that the task was to make the necessary road infrastructure investment by providing the funds to maintain the road network.
The Ashanti Regional Minister, Mr Kofi Opoku-Manu, said the deplorable condition of some roads in the rural areas of the Ashanti Region made it very difficult for farmers to cart their produce to marketing centres.
Mr Opoku-Manu urged road users, who were the direct beneficiaries of investments in the road sector, to support the government by co-operating in the payment of road tolls and user fees.
Source: Daily Graphic
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
Latest Stories
-
Keynote speakers arrive in Paris for Women of Valour
2 hours -
Coastal Civil Society Forum engages tidal wave victims, calls for urgent gov’t action
4 hours -
Prosecutors demand Luis Rubiales World Cup kiss retrial
4 hours -
Ghana won’t sink any further, investors must stay – Ishmael Yamson
4 hours -
Dr. Louisa Satekla pays courtesy call on Haruna Iddrisu to promote oral health education
4 hours -
ECB apologises for Pope Francis Ashes post joke
4 hours -
Denmark postal service to stop delivering letters
5 hours -
Photos: Mahama visits victims of tidal waves destruction in Volta region
5 hours -
Teen armed with gun overpowered by passengers onboard plane
5 hours -
Ghana Month: From war airbase to global gateway – KIA’s evolution and Ghana’s airline struggle
5 hours -
Rosetta Quaicoe: Preventing future Cholera outbreaks in Takoradi: A public health imperative
5 hours -
Edward Bawa assumes office as Acting Group CEO & MD of GOIL PLC
5 hours -
Ghana’s economy to face greater external stability in 2025; reserves to hit $8.8bn in 2025
5 hours -
Ghana’s current account balance to remain positive at 1.8% in 2025 – Fitch Solutions
5 hours -
Mahama directs Finance Minister to fund Blekusu Sea Defence Phase II
6 hours