Minister of Native Authorities, Chieftaincy and Spiritual Affairs, Ahmed Ibrahim, has given assurances that work on the Kumasi Kejetia Market Section 2 challenge and the Takoradi Central Market challenge might be accomplished.
Talking at a press convention in Accra yesterday, the Minister stated the 2 initiatives are strategic investments aimed toward reworking city commerce and fostering inclusive financial development.
He stated the present setback was because of non-payment of Interim Cost Certificates (IPC) by the earlier authorities and the following demobilization of contractors from the 2 websites in 2024.
Nonetheless, Ibrahim stated the federal government was nonetheless negotiating with the contractors to pay the moratorium prices to return to their respective websites to finish the challenge.
He defined that because of the debt restructuring coverage beneath the earlier authorities, large shutdown prices charged by contractors had collected, leaving main components of each initiatives uncompleted.
Price particulars
For the Kejetia Market Section II in Kumasi, the unique contract signed in December 2018 was price €248 million.
Nonetheless, because of extended interruptions and implementation delays, the price of the contract had now risen to €305.5 million.
The minister stated the €57.3 million improve represented a negotiated standstill declare, diminished from the €101 million set by the earlier authorities for the interval when contractors had been off web site, which was the principle impediment to the challenge.
“Parliament has permitted a €248 million mortgage for this challenge. An extra €57 million is just not coated by that mortgage and won’t be financed by banks.”
“The federal government should discover different financing to resolve claims earlier than contractors return to the sphere,” he stated.
Relating to the Takoradi Central Market challenge, he stated the contract was signed in April 2020 for 48 million euros over 36 months. On the time of suspension, the general progress fee was 81.62 % and building was 62.31 %.
He stated the contractor had already obtained €41.8 million, in addition to €17 million in negotiated suspension claims. There may be an impressive quantity of €6 million left on the contract.
Building standing
Ibrahim stated that as of the suspension in 2024, the second part of Kejetia was 58.22 % full, with engineering at 98.8 %, procurement at 77 % and precise building at 35.5 %.
For Takoradi, procurement is 100% full, engineering 88.85% and building 62.31% full.
He stated Kejetia Section I, which was accomplished beneath President John Dramani Mahama’s first time period at a price of €197 million, was delivered on time and inside finances with none extra prices.
He contrasted this with the second stage, saying the quantity negotiated and signed by the earlier authorities was 248 million euros, which has now risen to 305.5 million euros because of the 57 million euros in suspension prices.
authorities motion
Ibrahim stated his group is working with the Ministry of Finance and different stakeholders to take decisive steps to safe funding for excellent works.
“Procurement is sort of 100 per cent full and supplies have already been bought, so we wish the contractors again on web site.
What we want now could be to agree on a cost plan for the suspension claims.”
The Minister stated that after accomplished, Kejetia Section 2 would be the largest market within the West African sub-region, boosting native and regional commerce, growing income for metropolitan councils and supporting job creation beneath Ghana’s 24-hour economic system initiative.
“Pricey hardworking merchants in Kumasi and Takoradi, your considerations have been heard and we thanks in your persistence.
