The $250 Million new headquarters of the Bank of Ghana is set to be commissioned today, Wednesday, November 20, 2024, by President Akufo-Addo and the officials of the Central Bank.
The new office complex has been named “The Bank Square” and it is expected to be the operational and corporate office of the Central Bank.
According to the Bank, the project consists of three main blocks namely the Tower, Urban, and Amenities Blocks including basements, podium and ancillary facilities. The following are the specific details;
• Tower Block – 20-storey Tower Block
• Urban Block – 8-Storey Urban Block
• Amenities Block – 6-Storey Amenities Block
• Podium – Upper Ground
• Podium –Lower Ground
• Basements – Three (3) level basement car parking areas
• Ancillary facilities
• Energy Farm
• Treatment plants
• Security Gate Houses
Background
In the 1990s, the Bank of Ghana initiated the search for a new headquarters due to the encroachment of the Central Business District around its existing location, which hindered its capacity to expand. By 2011, the Board of Directors of the Bank acknowledged the need for a new site and agreed to begin the search for a suitable plot of land.
In 2012, the Bank was allocated a 5.19-acre land at Accra Central by the Lands Commission, with a payment of GHS 791,580. However, access to the land was denied when the Ministry of Foreign Affairs and Regional Integration refused to grant vacant possession, citing that they had never agreed to relinquish ownership of the land.
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From 2012 to 2016, the Bank received several offers for land in various locations such as near the Ridge Hospital, Airport City, 37 Military Hospital, and Achimota Forest. However, due diligence revealed that these lands were either encumbered, had unfavorable terms, or were unsuitable for the Bank’s intended purpose.
The urgency for a new headquarters became more pronounced after structural failures were discovered in the existing head office, which showed severe cracks and portions of the building began falling off. Following a condition survey by the Estate Office, the Bank engaged ESPCo, a third-party engineering firm, to conduct a Structural Integrity Audit. The audit confirmed that the current building, constructed in the late 1950s, was no longer fit for purpose and could not withstand major earth tremors.
In response to these findings, the Board of the Bank directed the Corporate Management and Services Department (CMSD) in December 2019 to initiate all necessary processes for developing a new corporate headquarters. Consequently, the Bank began procedures to acquire a parcel of land at West Ridge, previously owned by the State Insurance Company (SIC). This land was compulsorily acquired by the Government of Ghana through Executive Instrument 2020 E. I 304, which was gazetted in 2020. The acquisition process began in 2019, culminating in the formal publication of the executive instrument in 2020.
The Controversial Cost of the Building
The cost was originally estimated at $81.8 million. However, within eight months, the cost has escalated to $121 million. At the completion at the building, it was revealed to have cost the state a total of $250 million which has generated a huge public backlash.
The Bank in response through Stephen Opata, Special Advisor to the Governor of the Bank of Ghana, defended the project, emphasizing that halting construction due to escalating costs at this stage would have been inefficient. He added that it would have resulted in additional costs, given the advanced stage of development and the ongoing presence of contractors on-site.
Mr. Opata also acknowledged the concerns regarding the losses, explaining that they were attributable to several factors, many of which were beyond the scope of the new headquarters’ construction itself.
The Public Uproar
Many Ghanaians, considering the extremely high cost of the building have expressed their disapproval. The country is grappling with severe economic challenges, including high inflation, rising unemployment, and escalating public debt, which have placed significant strain on citizens. Inflation surged to over 54% in 2022, increasing the cost of living and pushing many Ghanaians into financial hardship. At the same time, public debt is limiting the government’s ability to provide essential services, and unemployment remains a critical issue, affecting the nation’s economic stability.
In the midst of these hardships, these Ghanaians believe investing over $250 million in a new headquarters during such a crisis is a misplaced priority and a bad use of scarce public funds.
Given Ghana’s current economic situation, the new BoG headquarters project has been regarded as an unnecessary expense, diverting resources from more urgent priorities. These funds, critics say could have been better used to stabilize the financial sector, support local banks, improve financial literacy, or fund economic programs that directly benefit the population.
