We’ve had to renegotiate terminal 3 loan deal from 8.5% to 5% – Kofi Adda

Hon. Kofi Adda, Aviation Minister

Minister of Aviation, Hon. Joseph Kofi Adda has rallied the Ghana Airports Company Limited (GACL) and the Ghana Civil Aviation Authority (GCAA) to strive to protect the public purse.

He made the call on March 5 when he performed a sod-cutting ceremony at the Kotoka International Airport (KIA) for the commencement of expansion works on an apron at the northern side of the airport and an office complex for the Ghana Civil Aviation Authority (GCAA).

Terminal 3

The minister touched on the well praised terminal 3 at the Kotoka Airport noting he’s had to renegotiate the credit facility terms the previous regime entered into for the erection of the terminal noting the terms were unfavorable to the state.

“We have renegotiated the interest on the loan from 8.5 percent to 5 percent,” adding such loan facilities should ideally attract a 1.5 or 2. 5 percent liable loan but not to exceed 3.5 percent. He submitted the current situation puts the Ghana Airports Company in a tight corner as it has to escrow all revenue in honoring its loan obligation hindering them from having funds to attend to other sectors.

Effective March 1,2019 airline companies using the Terminal 3 facility at the Kotoka Airport are obligated to pay US$5 per hour for using the counters at the facility. The new fee known as the Check-in Counter fee, means an airline company that uses three counters for three hours a day will now pay at least US$9000 every month likely to be passed on to passengers.

Already airline companies operating in the country complain of the additional hourly charge of US$120 for using the aero bridges and high rent of office space at the airport.

Meanwhile the apron; an area of the airport where aircraft will park, unload and load, refuel or for boarding as well as the office building is expected to be completed in two years.

The eight-storey building to be put up on a 9,300 metre square land would have underground parking, a data centre, a cafeteria, a gym and an executive lounge. The project is being constructed by Amandi Investments Limited.

The acting Managing Director of the Ghana Airports Company Limited (GACL), Mr. Yaw Kwakwa, said the northern apron project would have space for 14 aircraft.

By Michael Eli Dokosi/goldstreetbusiness.com