Second largest concrete precast plant in Africa commissioned

Accra, March 31, GNA - The second largest precast plant in Africa to manufacture all types of concrete blocks was on Friday commissioned at Ablekuma in Accra with a call on its owners to strive to produce quality blocks.

Mr Kwasi Ahwoi, Chief Executive of the Ghana Investment Promotion Centre (GIPC), made the call when he commissioned the foreign-owned plant with an investment capital of 10 million Deutsche Marks on Thursday.

The largest precast concrete plant is in South Africa. The plant, owned by Construction Pioneers Concrete Products, a subsidiary of Construction Pioneers(CP), will produce pipes, culverts and blocks.

It has the capacity to produce to 2,500 meters square of pavement blocks per day. Mr Ahwoi said road infrastructure development is capital intensive and long-term sustainability of such investments called for quality standard, effective and efficient construction materials to ensure the long life span of roads.

He said the plant is thus critical to government's policies as far as road construction is concerned, and emphasises the opportunities for private sector complementary role in national development.

Mr Ahwoi said CP's investment in the plant at this time when the economy is at the crossroads shows the confidence that the company has for the economic future of the country.

"The ever improving enabling environment, which the government has created to encourage and promote private sector participation in the economy, is demonstrated by this project.

"This project could, therefore, not have come at a better time than now when the government is more than ever before committed to providing good roads and ensuring that affordable houses are constructed for Ghanaians."

Mr Ahwoi noted that the housing situation in Ghana has been influenced by the rapid growth in population and increasing urbanisation. The inadequate housing delivery system to meet effective demand over the years has created strains on the existing housing stock, especially, in the urban areas.

The annual housing requirement is estimated by the Works and Housing Ministry and developers at around 140,000 units but the current production is only about 30,000 units per annum.

In recognition of this housing deficit and the urgent need to resolve the situation, government policy in the housing sub-sector has shifted from direct involvement in the provision of housing to facilitating access to the various resources required for housing development.

Mr Ahwoi said Government's national shelter strategy is to increase the number of rental units, home ownership units and the number of serviced plots for the housing industry.

In this regard, about 20,000 rental units, 10,000 housing units for ownership and 5,000 service plots would be developed nation-wide by December 31, 2002. On the road sub-sector, Mr Ahwoi said government, with the support of donor agencies, has over the years been investing huge sums of money in that area.

For the next five years up to 2004, government intends to spend 1,834.64 million dollars to improve the road condition mix. The target is 70 per cent good, 20 per cent fair and 10 per cent poor from the 1998 condition mix of 20 per cent good, 19 per cent fair and 61 per cent poor.

Mr Ahwoi called on the business community and potential investors to take advantage of the situation, saying: "today's economic pressures create the outlet valve for tomorrow's profit".

Mr Robert Ploetner, Managing Director of CP, said the construction of the plant forms part of the company's commitment to open up its services to the private sector.

He said it is well known that Ghana's economy is under a lot of pressure at the moment. "This pressure has been caused by developments within the global market and they are, therefore, way beyond our direct influence."

It, however, has effects on almost everybody's business as well as private lives, he noted. "Some people here in Ghana have become almost depressive about these consequences.

"However, we have to be optimistic because facing crisis can never mean to give up fighting and CP, together with its partners, will endeavour to do its best to overcome the worst and contribute to the development of the nation."

Mr Ploetner said the plant, which is the latest of the art, is fully computerised and makes use of less manual labour to produce concrete products to customers' choice.