Ministry of Roads and Highways to terminate non-performing projects

Accra, Oct. 20, GNA - The Ministry of Roads and Highways is to terminate the contracts on non-performing projects as an intervention to address the numerous challenges facing the sector. Those projects would then be prioritized, repackaged and re-awarded when confirmed and financial sources identified, Mr Joe Gidisu, the Sector Minister said on Tuesday.

He said the Ministry would also shift its focus from upgrading and rehabilitation of roads to routine and periodic maintenance activities to enhance and protect the huge investment made in the in the provision of the road infrastructure.

Speaking at the Meet-The-Press series organized in Accra to highlight the programmes and performance of the Ministry, Mr Gidisu said the policy shift would enable the government to attain the desired national road condition mix of 60 per cent good, 21 per cent fair and 19 per cent poor by 2012.

He said some of the projects awarded in the last quarter of 2008 would have to be suspended or terminated due to severe funding constraints. Mr Gidisu said even though government had since January 2009 paid GH¢154 million out of the indebtedness to contractors under the Ghana Government budget, the arrears to contractors as at September 2009 still stood at about GH¢136 million.

"A similar situation persists with regard to the Road Fund. An amount of GH¢87.91 million has been paid to contractors from January to September this year. The balance of indebtedness as at September still stands at about GH¢118 million," he said. Mr Gidisu said there was the need to further terminate some of the projects if any meaningful impact would have to be made in the maintenanc= e of the roads.

"I wish to assure you that the Ministry will prioritise, repackage and re-award these projects when confirmed and reliable financial sources are identified," he said.

Mr Gidisu said that continued upgrading of parts of the road network gradually had led to the deterioration of the existing network, the effect of which was compounded during the last raining season.

He said inadequate funding leading to deferment of road maintenance programmes, low delivery capacity of the local construction industry, inability of to raise revenue from other sources to support road maintenance programmes and the conversion of a large number of vehicles from the use of petrol to Liquefied Petroleum Gas were some of the major problems facing the Ministry.

Others, he said, were inadequate logistics for project supervision, delays in honouring contractors' payment certificates, continuous expansion of the road network and a portfolio of a large number of road projects being implemented outside of the approved budget.

Mr Gidisu announced that the Ministry would expand the electronic tolling of roads to other sections of roads to improve revenue generation into the Road Fund and would also observe prudent fiscal management to reduce the debt portfolio of the Road Fund and Consolidated Fund. He said as at the end of June, this year, a total of 4,047.38 km representing 38 per cent of an approved programme of 10,593 km for routine maintenance works had been undertaken.

"Similarly, a total of 108.11 km of re-gravelling/spot improvement, resealing and other periodic maintenance works representing 24 per cent was executed out of an approved 450 km."

Mr Gidisu said that improvement works comprising partial reconstruction, upgrading and rehabilitation of roads including town roads, were carried out on a total of 71.47 km representing 73 per cent of an approved programme of 97 km.

"During the same period, development works including major construction was undertaken on 62.46 km of roads representing 31.2 per cent of the approved programme."

Mr Gidisu said other maintenance road projects were on-going in all regions across the country and most of these projects are expected to be completed by December 31, 2009.