The Minister of Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, has given an assurance that work on the Kumasi Kejetia Market Phase II and the Takoradi Central Market projects will be completed.
Addressing a press conference in Accra yesterday, the minister said the two projects were strategic investments which were designed to transform urban commerce and promote inclusive economic growth.
He attributed the current setbacks to non-payment of Interim Payment Certificates (IPCs) by the previous administration, and the subsequent demobilisation of the contractors from the two sites in 2024.
Mr Ibrahim, however, said that the government was still negotiating with the contractors for the payment of some suspension costs for them to return to the respective sites to complete the projects.
He explained that the debt restructuring policy under the former government resulted in the accumulation of huge suspension costs claimed by contractors, leaving key components of both projects uncompleted.
Cost details
For the Kejetia Market Phase II in Kumasi, the original contract sum was €248 million when it was signed in December 2018.
However, due to prolonged suspension and delayed implementation, the contract cost had now risen to €305.5 million.
The minister said the €57.3 million increase represented suspension claims negotiated, down from €101 million by the former administration for the period the contractor remained off-site, which had become the main impediment for the project.
“Parliament approved a loan of €248 million for the project. The additional €57 million is not covered by that loan, and the bank will not fund it.
“The government must now find alternative financing to settle the claim before the contractor can return to site,” he said.
On the Takoradi Central Market project, he said the contract was signed in April, 2020, for €48 million, over 36 months. At the time of suspension, overall progress stood at 81.62 per cent, with construction at 62.31 per cent.
He said the contractor had already received €41.8 million, while €17 million in negotiated suspension claims had also been paid. An outstanding balance of €6 million remains on the contract.
State of works
At the time of suspension in 2024, Mr Ibrahim said, Kejetia Phase II was 58.22 per cent complete, with engineering at 98.8 per cent, procurement at 77 per cent, and actual construction at 35.5 per cent.
For Takoradi, procurement was 100 per cent complete, engineering 88.85 complete, and construction 62.31 per cent.
He said that Kejetia Phase I, which was completed under the first tenure of President John Dramani Mahama at €197 million was delivered on time and within budget without additional costs.
He contrasted this with Phase II, which he said was negotiated and signed by the previous administration at €248 million, but had now ballooned to €305.5 million due to the suspension cost of €57 million.
Government’s action
Mr Ibrahim said his outfit, in collaboration with the Ministry of Finance and other stakeholders, were taking decisive steps to secure financing for the outstanding works.
“We want the contractors back on site because procurement is nearly 100 per cent complete and the materials have already been purchased.
What we need now is to agree on a payment plan for the suspension claims,” he said.
The minister said once completed, Kejetia Phase II would become the largest market in the West African sub-region, boosting local and regional trade, enhancing revenue for metropolitan assemblies and supporting job creation under Ghana’s 24-hour economy initiative.
“To the hardworking traders in Kumasi and Takoradi, your concerns have been heard and your patience is appreciated.
Source:
www.graphic.com.gh
