Contractors have attributed delays in most government construction projects in the country to the International Monetary Fund programme.
According to the President of the Ghana Chamber of Construction and Industry, Emmanuel Cherry, this has also impacted negatively on its members as they borrow from the banks to finance projects with the hope of receiving inflows from the government on time.
“IMF says all donor-funded projects must be put on hold. That is why we see projects like Tema roundabout, Teshie Nungua, Abossey Okai flyover, Takoradi and Kumasi interchanges all stopped. The government is now trying to make some allocations through the 2024 Budget to some particular contractors to go back to the site”.
“But this is costing us so much as a nation of interest on delayed payments. However, that money could have been used to do other projects, but it's going into just one project for no work done,” he added.
Mr. Cherry disclosed this to Joy Business on the sidelines of the Chamber’s Nationwide Capacity Training Programme at Dodowa, in the Greater Accra region.
He cautioned against the award of new projects without proper funding, saying election years are always tricky.
The Deputy Chief Executive Officer of the Public Procurement Authority, Kwame Prempeh, also raised concerns about the increasing rate of unbudgeted projects being executed by contractors.
Speaking in an interview with Joy Business on the sidelines of a training workshop at Dodowa, he said this issue has been contributing to the increasing cost of construction projects financed by the State.
“If in a particular year, the government has not made a provision for that particular road, the particular building, or that particular service, and you go and execute that, that’s where the arrears build up. Because there are no provisions in the budget to pay for those activities and then it keeps building up over the year”.
“With the integration of Ghana Integrated Financial Management Information System (GIFMIS) system with GHANEPS, the approval to start a project or approval that the budget is available will help reduce arrears in the system,” he added.
As of November 2023, there were over 100 abandoned road projects in the Central Region. This encompassed initiatives by various agencies like the Ghana Highways Authority and the Urban Roads Department.
However, the 2024 Budget allocated GH¢11.6 billion to settle outstanding dues owed contractors. This aims to incentivize their return to sites and resume work on unfinished projects.
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