Minister meets construction agencies

Accra, April 21, GNA - Dr. Kwabena Duffuor, Minister of Finance and Economic Planning (MFEP) on Tuesday gave the assurance that government was taking concrete steps to make available funding for payment of all arrears owed to contractors in the construction industry. He said government was aware of the huge arrears and was making sure that the necessary funds were secured to enable the Road Fund to initiate payments.

Dr Duffuor, in a speech read for him by Mr. Kwadwo Awuah Peasah, Chief Economic Officer, MFEP, at a meeting with contractors and stakeholders of the construction industry in Accra, appealed to the contractors to exercise patience while efforts were made for the necessary payments.

Mr Duffuor said it was the wish of government that problems associated with the long processing of payment certificates would be removed so that when funds were available, contractors would be paid promptly.

He said the 37 steps indicated by an earlier recommendation to the Ministry of Roads and Highways as procedures to be followed by contractors for payments of their monies after a job was executed was unfair and needed to be reviewed. The Finance Minister said the success in the over-all economy and an enhancement in living standards and condition could not be possible without taking a critical look at the provision of infrastructure, therefore government was committed to ensuring that the needed funding and other imputes were made available to assist contractors deliver quality roads. The meeting, which was jointly organized by the Business Sector Advocacy Challenge (BUSAC) and the Association of Road Contractors (ASROC) Ghana, was part of an advocacy programme to help reduce the long and cumbersome procedures for processing payment certificates to contractors in respect of contracts executed. Mr Duffuor also commented on the poor performance of some local contractors, saying while some contractors were performing creditably, others were not and called on the Association to institute proper mechanisms to sanction contractors whose performances fell short of expectation.

"The construction industry, as we all know is capital intensive. For this reason huge sums of moneys are allocated for the sector each year, with the view of improving the sector," he said. He mentioned other constraints and challenges such as high cost of materials, qualified personnel, bidding for projects, lack of financial facilities and high interest rates and said government would not close its eyes on those problems and challenges, but would do all it could to provide solutions so that the industry would be re-vamped to enable it play its proper role in the economy.

Mr Joe Gidisu, Minister of Roads and Highways urged participants to use the occasion to also discuss and resolve the larger and bigger picture of the low capacity of local contracting industry. He said the many contracts that were awarded annually following the many demands of stakeholders in the face of the Ministry's limited financial resources, had also been a major bottleneck in the delay for payments for works done.

He expressed the hope that the meeting would result in an improvement in the payment regime to enable contractors to meet their deadlines.

Mr Johaness Twumasi-Mensah, National Chairman, ASROC, said it was unfortunate that a recommendation for the reduction in the 37 processes for processing invoices and certificates for contractors to the Ministry of Roads and Highways had not yet been implemented. He said it was the conviction of the Association that baring the lack of adequate funds, the reduction of the processes would definitely lead to a reduction in payment and therefore remove some of their payment problems.

He further expressed the hope that the meeting would lead to the adoption of measures which would create favourable conditions for contractors to operate with minimum problems, so that the construction industry would continue to be a critical factor in the development of the nation's economy.