The government is sourcing new funding for resumption of works on the stalled Kejetia Market Phase II and the Takoradi Market redevelopment projects in the Ashanti and Western Regions respectively.
He said discussions were ongoing with the Ministry of Finance and other stakeholders to secure the required funding, accelerate construction and strengthen project monitoring to ensure value for money.
Speaking at a press conference in Accra yesterday, the Minister of Local Government, Chieftaincy and Religious Affairs, Mr Ahmed Ibrahim, said the new move by the government was aimed at settling outstanding financial obligations, negotiating payment plans with contractors and consultants, and facilitating the resumption of work on the projects.
He attributed delays in the completion of the Kejetia Market Phase II and Takoradi Market redevelopment projects to unpaid interim payment certificates and suspension claims inherited from the previous government administration.
The projects, he emphasised, remained strategic investments intended to transform urban commerce, improve livelihoods and promote inclusive economic growth.
He explained that the projects suffered setbacks in 2024 after contractors demobilised from site due to non-payment of certificates and the impact of the debt restructuring programme.
Mr Ibrahim stated that the delays had resulted in congestion, unsafe trading conditions, loss of income for traders and underutilisation of already invested public resources.
“The market projects are not merely infrastructural initiatives. They are strategic investments aimed at transforming urban commerce, improving livelihoods and promoting inclusive economic growth,” he stated.
On the Kejetia Market Phase II project, the minister said an engineering, procurement and construction contract valued at 248 million euros was signed in December 2018 for a 48 month period.
According to him, by the time work was suspended in 2024, overall project completion stood at 58.22 per cent, while actual construction works were estimated at 35.5 per cent.
He disclosed that out of the 248 million euro contract sum, about 171 million euros had been paid, leaving an outstanding balance of 44 million euros.
Mr Ibrahim further stated that the contractor had initially presented a suspension claim of 101 million euros due to delays and demobilisation from site, but negotiations by the previous administration reduced the figure to 57 million euros.
He said the total financial commitment on the project had consequently risen from the original 248 million euros approved by Parliament to more than 305 million euros.
Touching on the Takoradi Market redevelopment project, Mr Ibrahim indicated that a 48 million euro contract was signed in April 2020 for 86 months period.
He noted that by the time the project was suspended, overall progress stood at 81.62 per cent, while construction works had reached 62.31 per cent.
Moreover, the minister said 41.28 million euros had already been certified and paid to the contractor, in addition to 13 million euros paid as part of negotiated suspension claims, leaving an outstanding balance of six million euros.
Mr Ibrahim then assured traders and residents that government remained committed to completing the projects within the shortest possible time.
BY STEPHANIE BIRIKORANG AND NELLY QUARCOOPOME
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