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Govt owes road contractors GH85,000,000

Thu, 3 Apr 2008 Source: GNA

Koforidua, April 3, GNA - Mr Richard W. Anane, Minister of Transportation, on Wednesday said the failure of road agencies to prioritize road projects and keep to the approved budgets had resulted in the Government currently owing contractors GH85, 000,000.00 for work executed in 2007.

He therefore directed heads of road agencies not to award any contract, which is not within the approved budget for the year without approval from the Ministry.


Mr Anane said this in a speech read for him at an annual management seminar of the Department of Feeder Roads in Koforidua. The two-day seminar is under the theme: "Rationalized Programmes Lead to Efficient Road Management".


He said the Roads Prioritization Methodology (RPM) being implemented by the Department was therefore very appropriate and a laudable initiative that served as a tool for prioritizing roads to be developed.


"I would therefore like to encourage and urge that you implement to the full the RPM in the selection, planning and the award of contracts within the prescribed budget/tender ceilings".

Mr Anane said the feeder road network had witnessed a consistent and an appreciable increase in length from 32,600 kilometer (km) in 2001 to 41,000km in 2007 adding that the phenomenal growth was indicative of government's commitment to provide basic access to the productive areas of the economy.


Mr Elvis Asafo-Adjei, Director of the Department of Feeder Roads said the Department plays an important role in achieving the vision of the Government, which is attaining a middle income status by 2015. He said the thrust of the seminar was to fashion out strategies to reduce the current over-commitment of funds under the Road Fund and adopt measures to ensure that future programmes were implemented within budget.


Mr Asafo -Adjei advised regional managers of the department to take keen interest and ensure that environmental issues were assessed during project planning stages and the mitigation measures implemented during the construction period.


Mr Kwadwo Affram Asiedu, Eastern Regional Minister, who chaired the function, stressed the importance of good road network to help transport foodstuffs from farms to marketing centres.

Source: GNA