The Governor of the Bank of Ghana, Dr. Ernest Addison, has assured Parliament and the public that the central bank remains committed to transparency and prudent financial management regarding the construction of its new corporate headquarters.
Addressing Parliament on Tuesday, Dr. Addison acknowledged the significant public interest in the project and provided detailed insights into its cost, rationale, and payment structure. He emphasized that while the project was initiated before his tenure, the bank fully recognizes its responsibility to manage resources efficiently.
“the reconstituted Bank of Ghana board will be sworn in next week, and the board will begin reviewing some of these legacy issues,” he stated. “We intend to seek authorization from the board to engage AESL for a value-for-money audit of the new building. We believe this will bring closure to the issue of our new Bank of Ghana building,” he added.
Project History and Cost Breakdown
According to Dr. Ernest Addison, discussions on constructing a new headquarters date back to 2011, with multiple attempts made to acquire land before a final decision was reached in 2019. A structural integrity audit conducted that year revealed significant defects in the bank’s current head office, which was built in the 1950s, necessitating the new project.
The governor disclosed that the project was initially valued at $81.8 million but was later revised to $222.8 million due to redesigns. With the inclusion of security upgrades, and the inclusion of advanced building management systems, the project is estimated to cost about $261.8 million. As of February 2024, approximately $230 million has been paid towards the project, with an outstanding balance of $31.8 million. Additionally, $48.3 million has been paid in taxes and levies.
“The project was initially valued by the PPA at US$81.8 million, but later increased to US$121.1 million after the Bank of Ghana requested for re-evaluation. This was revised again to US$222.8 million after the redesign and inclusion of building management systems,” he said
Parliamentary Inquiry on Cost and Contract Currency
During the session, Hon. Anthony Nyarko Ampem questioned why the contract was awarded in U.S. dollars instead of Ghanaian cedis. Responding on behalf of the project team, an official explained that the decision was made to lock in the contract’s value and avoid fluctuations due to currency depreciation.
Hon. Nyarko Ampem also inquired whether the cost of the land was included in the total project expenditure. The project team clarified that the land cost was separate, as it was compulsorily acquired by the government and allocated to the Bank of Ghana.
Commitment to Transparency
Dr. Ernest Addison reiterated the Bank of Ghana’s commitment to its core mandate of maintaining price stability, ensuring financial sector resilience, and fostering economic growth. He assured Parliament that the new board would exercise strict oversight and ensure value for money in all undertakings related to the headquarters project.
The governor, Dr. Ernest Addison concluded by encouraging lawmakers to review the documents submitted by the bank for further clarification and pledged continued cooperation in addressing any concerns.
