Ten years for Kejetia rehabilitation

Accra (Greater Accra) 10 Nov. '99 - The Kejetia rehabilitation project, which began in 1990, is expected to be completed in the next millennium - January 2000, Mr Steve Akorli, Deputy Minister of Roads and Transport, told Parliament on Tuesday.

He said work on the project was 80 per cent completed by the end of October. The Deputy Minister attributed a number of factors to the delay of the project, which should have been completed by the end of December 1998.

Mr Osei Kyei-Mensah-Bonsu, NPP-Old Tafo/Suame, had asked why the project scheduled for completion in December 1998, could not be completed.

Mr Akorli explained that the process for re-awarding the contract to Limex-Bau, a German company for completion by the end of December 1998, contributed to the delay. Besides, there were administrative problems associated with co-financing by the government, the World Bank and the Organisation of Petroleum Exporting Countries (OPEC). There was also the problem of cash flow, resulting from the change of contractors and the closure of the International Development Association (IDA) credit line and the extension of the OPEC credit.

Mr Akorli said, however, that "these problems have been contained and the contractor is now making tremendous progress", adding that the Kumasi Central Market rehabilitation, which is part of the Kejetia Redevelopment Project, has been completed.

Mr Akorli also indicated that the rehabilitation of Obuasi town roads, estimated at 16.406 billion cedis, would be completed by 31 March, next year.

The original completion date of the project, which was started in March 1996, should have been 30 September, 1998, but this could not be met due to delays in payments for certified work done by the contractor within the 90 days as specified in the contract, he said.

Mr Akorli was responding to a question by Mr Anthony Boadi- Mensah, NPP-Obuasi, who wanted to know the reason for the delay and the amount so far, expended on it.

The delay in payments has affected the contractor's cash flow and his ability to acquire inputs for the work.

He said the delay has also been caused by the relocation of utility lines for the Ghana Water Company Limited (GWCL) and the Electricity Company of Ghana (ECG), additional works of stone pitching and concrete laying, as well as the excessive rainfall this year.

Mr Akorli said to ensure that the revised date of 31 March, is achieved, "payments for the project will now be made from the Road Fund to improve the contractor's cash flow."

Mr Akorli said to date, the contractor, Limex Bau, has been paid 6.728 billion cedis, leaving an outstanding payment of 1.950 billion cedis and that about 68 per cent of the project has so far been completed.