The Minister for Roads and Highways, Governs Kwame Agbodza, has voiced strong displeasure over the stalled Tamale-Walewale Road project, revealing that only one percent of physical work has been completed despite a substantial $29.6 million payment to the Indian-based construction firm, JMC now Kalpatura Projects.
Addressing Parliament, Agbodza disclosed that this payment constitutes 20 percent of the total $158 million contract sum for the first phase, covering the stretch from Savelugu to Walewale. The project, initially slated to begin in June 2022 and conclude by December 2025, faced a major setback when the contractor issued a notice of termination on March 11, 2024.
The Minister emphasized the government’s commitment to ensuring the contractor fulfills his obligations, warning of legal action if the company fails to deliver.
“The project cost, as documented, is $158,617,764,” Agbodza stated. “And yes, the contractor claimed $29,648,180.20. The physical progress on site is 1%. In fact, it means that we didn’t even finish clearing of the site.” He elaborated.
Agbodza further criticized the contractor’s actions, highlighting an additional $14 million claim for what he described as no work done, expressing frustration over what he perceives as a pattern of contractors making large claims without commensurate work.
“It has become a habit of some of the developers of the supplier’s credit, though the debt restructuring meant that they were not working. They sit in their offices and make huge claims. They sit in their offices and make huge claims against government just for standing on the site,” he remarked.
The Minister lamented the situation, especially given the government’s outstanding debts to Ghanaian contractors.
“As a Road Minister, knowing that I owe Ghanaian contractors over $21 billion, it is quite disheartening that at the same time we are unable to pay Ghanaian contractors for work they have done, we have paid somebody $30 million, and the person is basically asking us that we should let him go with our $30 million.” The Minister stated.
He concluded with a firm resolve, to use the laws within the country to demand that $30 million worth of work is done, or take the legal actions to make sure that the money is retrieved.
The construction of the Walewale- Tamale Road was initiated by the former Vice President, Dr. Alhaji Mahammud Bawumia and conducted a sod cutting exercise on June 15, 2022.
Story by: Eugenia Ewoenam Osei
