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Residents of Asutifi mount pressure on Newmont Ghana over abandoned road project

The state of the Asutifi district road

Sun, 27 Aug 2023 Source: Nana Peprah

Some residents within the Asutifi district of the Ahafo Region have expressed disappointment in the Newmont Ghana Gold Limited over its failure to release funds for the completion of their deplorable roads, urging the company to immediately release the funds.

Most of these residents who live along the Kenyasi-Hwediem stretch are urging the mining firm to honour a promise it made to release funds for the fixing of their roads, as signed in agreement with the government.

According to them, the project which started sometime ago has been halted due to the company's refusal to release the funds for its continuation.

They said the firm in its agreement with the government pledged to fix the 8.2-kilometre road by providing funds.

The residents, led by the Ahafo-Kenyase Development Association and the MP for the area, Patrick Banor blame the project's delay on the firm's refusal to release the funds.

The Association is, therefore, calling on the company to honour its promise as contained in the agreement with the government to enable the contractor to return to the site.

Meanwhile, a letter from the Ghana Highway Authority (GHA) sighted by this reporter reveals that the contract was awarded to Kofi Job Construction at an initial cost of GH¢70.3 million.

According to the letter, the physical and price contingency in the contract amounted to GH¢14,019,536.30, bringing the total cost to GH¢95.4 million.

“Another issue is the cost overrun due to earthworks. This has overrun the initial Bill of Quantities to the tune of about GH¢20,348,360.00. This was due to the instruction to use rock fill to stabilise the soil,” part of the letter read.

Speaking to this reporter, Nana Kwasi Agyemang who is the acting president of the Ahafo-Kenyase Development Association said, that although the Newmont company initially released some of the funds, but, that wasn't enough to help the contract's completion.

He said, due to the earthmoving equipment of the company, it had agreed to pay for the contractor to fill the base of the road with rocks.

He continued that additional work coupled with the exchange rate losses, increased the cost of construction, thereby stalling the project.

Nana Kwasi Agyemang who further applauded the Newmont mining firm for paying the GH¢95.4 million to the contractor to execute the work done so far, however, called on them to, as a matter of urgency, release the remaining GH¢35,574,346.46 to complete the project.



According to him, the Hwediem-Kenyase road played a very important role when it came to the transport of foodstuffs, gold, timber etc. He is, therefore, appealing to the Newmont company to as a matter of urgency expedite the construction of the road.

Some residents who spoke to this reporter further bemoaned that, the dusty and muddy nature of the roads during dry and rainy seasons, respectively, affect them badly. They are, therefore, calling on the mining firm and other stakeholders to as a matter of urgency ensure the continuation of the project to redeem them from suffering.



Source: Nana Peprah