Where it started
The challenge
Fare revenue alone would not cover the cost of the service at fares commuters could afford, so a purely user-paid concession would attract neither bidders nor lenders.
The assembly could pay for the service over time, but lenders needed to be sure the payments would arrive, every month, for the life of the contract.
What we did
Our approach
- Test the caseWe modelled ridership, fares and operating costs, and the wider economic benefit to the city, and tested them against comparable systems elsewhere on the continent.
- Design the payment modelWe proposed an availability payment with performance deductions, backed by a ring-fenced city revenue and an escrow account lenders could see.
- Prepare the marketWe consulted operators and development lenders on the draft terms before finalising the tender documents, so the first bids would be bankable.
Where it ended
The outcome
The assembly approved the structure and launched procurement for the first phase. Two development lenders confirmed their interest in financing the winning bid before bids were due.
- 2routes in the first phase
- 27 kmof dedicated lanes
- 12 yearsoperating contract
The payment model gave us the comfort we needed to engage early.
Transport lead, development finance lender
Mandate leadAbena OwusuDirector, Infrastructure finance, Accra
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