The World Bank
The World Bank has warned that a significant funding gap is threatening the implementation of the Greater Accra Resilient and Integrated Development (GARID) Project, despite the programme having access to its full $350 million financing.
According to the Bank's latest implementation update, released in May 2026, cash flow constraints caused by fiscal measures introduced by the Ministry of Finance have slowed critical flood control and drainage works, leaving the flagship project behind schedule.
"The implementation of GARID has been significantly constrained by fiscal measures introduced by the Ministry of Finance during 2025," the report stated.
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The concerns have gained renewed urgency following the June 29 floods, which claimed at least 12 lives and reignited debate over Accra's persistent flooding challenges.
However, while the World Bank noted that the project's flood early warning system is fully operational, no public warning was issued ahead of the disaster, raising fresh questions about the system's effectiveness.
According to the report, the Project Coordination Unit estimates funding requirements of about $40.8 million for 2026.
However, the Ministry of Finance has allocated only about $17.5 million, leaving a substantial financing shortfall. The report noted that a request for commitment authorisation covering $79.8 million in civil works contracts, submitted by the Ministry of Works and Housing, is still awaiting approval.
According to the World Bank, the financing difficulties stem from fiscal controls introduced by the Ministry of Finance in 2025, including a ceiling on project disbursements and the temporary sweeping of GH¢13.8 million from the project's designated account.
The measures resulted in unpaid Interim Payment Certificates (IPCs), delayed payments to contractors, and slower progress on major civil works.
The Bank said that although engineering designs for most approved projects have been completed, construction has advanced slowly, with several contractors falling behind schedule.
It warned that the prolonged disruptions could trigger contractor claims, price adjustments, procurement delays, and increased project costs.
The report further revealed that a withdrawal application worth $10.5 million was processed in February 2026, the project's first withdrawal since November 2023, while the GH¢13.8 million previously swept from the project account was returned in March 2026.
Government has also submitted a restructuring request to allow funds to be reallocated across expenditure categories.
However, the World Bank said these interventions have not fully resolved the liquidity challenges.
"These actions have partially eased liquidity constraints but have not fully addressed the financing gap affecting works implementation," the report stated.
The Bank further cautioned that delays in approving additional funding authorisations could undermine implementation.
"Continued delays in securing authorizations pose a risk to maintaining implementation momentum and avoiding further contract disruptions," it noted.
According to the report, as of April 14, 2026, only $137 million, representing about 40% of the project's total financing, had been disbursed.
The report added that virtually no disbursements were made between November 2024 and March 2026 due to government fiscal controls, with funding flows only resuming in April 2026.
ANAS/MA
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