Oil cash projects: Variations cost GHC122.8m

Delays in the execution of some oil-funded projects, particularly roads, resulted in substantial cost variations to the tune of GH¢122.8 million (GH¢122,835,160.13).

The projects, 11 in number, which were awarded and completed between 2011 and 2016, were to originally cost GH¢187.8 million (GH¢187,840,621.98) in total.

However, variations resulting from the delays encountered in the execution of the projects increased the amount to GH¢310.6 million (GH¢310,675,782.11).

The variations amount to 65.39% over the original contract sum for the 11 projects.

This was contained in the Public Interest and Accountability Committee’s (PIAC) 2017 District Engagements and Project Inspections Report, which was made public at a press conference in Accra yesterday.

GH¢8.8m variation incurred on market complexes at Mamponteng The cost of market complexes at Mamponteng in the Ashanti Region jumped from GH¢8.8 million (GH¢8,841,032.81) to GH¢18,399,483.90 due to delays in executing the project on time.

GH¢30m variation on Asikuma Junction to Hohoe section of the Eastern Corridor Road.



The Asikuma Junction to Hohoe section of the Eastern Corridor Road in the Volta Region, which was being funded with oil money, recorded a price variation of GH¢30 million as delays increased the cost of the project from GH¢105 million (GH¢105,777,580.31) to GH¢135 million (GH¢135,777,580.3). GH¢18m variation incurred on water project.

In respect of the five water supply projects in Ablorgame, Tokor and Sadzimadza in the Volta Region, which cost GH¢13 million at the initial stage, the cost rose to GH¢31 million, recording a variation of GH¢18 million.

GH¢425,169.43 variation incurred on road

The contract price for Trom Junction, Somanya to Odumase Kpong Road in the Eastern Region jumped from GH¢30.8 million (GH¢30,886,702.11) to GH¢31.3 million (GH¢31,311,871.54), recording a variation of GH¢425,169.43. GH¢4m variation incurred on steel bridge.

Cost of the steel bridge on River Ponpon Nsutapong–Chakachakam Feeder Road in the Eastern Region, which first cost GH¢1.1 million (GH¢1,149,381.94), went up to GH¢5.1 million (GH¢5,192,338), a difference of GH¢4 million (GH¢4,042,955.96). The construction of a Faculty of Basic and Biomedical Sciences, Hostel and Staff Accommodation at the University of Health and Allied Sciences in the Volta Region started at a price of GH¢3.6 million (GH¢3,600,000), but by the time the project was completed, the price rose to GH¢34 million (GH¢34,107,262.90).

This represents a variation of GH¢30.5 million (GH¢30,507,262.90). GH¢28m variation incurred on Anyinasu Sekyeredumase Road The Anyinasu Sekyeredumase Road in the Ashanti Region, which initially cost GH¢8.9 million (GH¢8,957,051.94), went up to GH¢37.8 million (GH¢37,813,918.65), recording a difference of GH¢28.8 million (GH¢28,856,866.71).



GH¢498,657.42 variation incurred on dormitory block

A two-storey dormitory block for students at Mawuli SHS at the Ho Municipality in the Volta Region commenced at a contract sum of GH¢239,674, but due to delays, the final price hit GH¢738,331.42, recording a variation of GH¢498,657.42.

GH¢123,835.38 variation incurred on St. Peters to 3rd Gate Roads St. Peters to 3rd Gate Road in the Greater Accra Region, which initially started at GH¢4 million (GH¢4,023,421.80), was completed at a cost of GH¢4.1 million (GH¢4,147,257.18), with a variation of GH¢123,835.38.

GH¢460,991.97 variation incurred on Aflao town road and Keta area roads The Aflao town road and Keta area roads in the Volta Region also recorded a price variation of GH¢460,991.97 as the contract sum increased from GH¢5.4 million (GH¢5,452,392.55) to GH¢5.9 million (GH¢5,913,385).

PIAC’s engagements were held in 20 districts across four regions, which comprised Ashanti, Volta, Eastern, and Greater Accra, with the aim of gathering and obtaining first-hand information on the quality and impact of projects funded with petroleum revenues at the sub-national levels.

Dr Steve Manteaw, who addressed the press, said PIAC recommends that payment to contractors for certified work done should be made promptly to forestall cost overruns and ensure value for money.

“Contracts for the execution of projects any associated variation orders should be awarded only after it is certain that the funds needed to complete the projects will be available.”

They also recommended that project selection should be based on the sufficiency and availability of ABFA funds, adding that selected projects should be fully funded with petroleum revenue to ensure easy tracking of funds and reporting.