Ghana’s Minority in Parliament has said it does not understand why the state must give a tax waiver of $23.9 million to Platinum Properties Limited under the Ghana Investment Promotion Centre (GIPC) Act 2013 (Act 865), since, in the Caucus’ view, Platinum Properties, the company undertaking the project, is undeserving of such largesse as the funding from the project is locally sourced, hence does not qualify as a Foreign Direct Investment (FDI).
The Airport City Project comprises 215 hotel rooms and suites and 149 serviced apartments under the ‘Pullman Living’ brand, with an executive lounge.
It will also have two restaurants, a range of international cuisines, two swimming pools with pool bars, a fitness centre, a wellness spa and plush landscaped areas.
Set to open in 2021, it will be the first dual hospitality offering in Ghana and also become Ghana’s largest and most distinguished hospitality facility.
Pullman Accra Airport City is a joint development between equity partners: Inter-Afrique Holdings Ltd and the Ghana Infrastructure Investment Fund (GIIF).
The Minority, however, said in a statement signed by the Ranking Member of the Finance Committee, Mr Cassiel Ato Forson, that: “The 75 per cent debt that will be used for the project amounting to about 94.5 million dollars will be funded by Ghanaian banks, in essence, the debt amount of 94.5 million dollars will be drawn from Ghana’s economy”.
The Minority said the Finance Committee has not been given the full details of funding for the remaining 25 per cent equity component of the project, adding that the only information available to the Caucus was that the $31.5 million dollars would come from the Ghana Infrastructure and Investment Fund ($13.5 million) – 41 per cent while the sponsor, one Dr Kwame Nyantakye-Owusu, doles out $18. 5 million – 59 percent.
The Minority, however, argued: “The entire equity of 31.5 million dollars does not meet the minimum requirement of 50 million dollars for a strategic investor status for tax purposes,” noting: “Dr Kwame Nyantakye-Owusu who is the sponsor is contributing only 18.5 million dollars [which] clearly does not meet the 50 million dollars threshold as strategic investor under the GIPC Act”.
The Minority said it is unable to determine the list of items contained in the assessor’s list which are to be exempted under the request for the project in question due to the fact that no bills of quantity and relevant project drawings were provided as part of the request to enable the Finance Committee to come to a reasonable determination of the identified examined items.
“Again, we are unable to appreciate the reasons why a building project estimated to cost 73 million dollars will import materials in excess of 66 million dollars for which a tax waiver liability of about 24 million dollars is required,” The Caucus said.
When the issue came up for debate on the floor of Parliament on Tuesday, 18 February 2020, the Minority threatened to stage a walkout if the Speaker and the Majority railroad the bill through.
At a sod-cutting ceremony for the project in December 2018, President Akufo-Addo said the Airport City Project was in line with the government’s vision of using an appropriate mix of public policy, and public-private investments to help market the country as an “exciting destination for leisure, conference, sports, health, educational and cultural tourism.”
The President said apart from the creation of over 1,000 jobs at the construction phase, the project would during its operating phase employ 546 persons.
President Akufo-Addo was excited that Pullman Accra would be the highest Green-Rated building in Ghana, making it the only second-highest Green-Rated hotel in Africa.
Source: Classfmonline
