The Minister for Local Government, Chieftaincy and Religious Affairs, Mr. Mahama Ayariga, has announced the resumption of work on the Kejetia Market Redevelopment Phase II project by the contractors next month.
The project had since last year stalled following financial constraints, but the Minister says the government has now secured 248 million Euros to resume work on Phase II, although the amount is not enough to complete the entire project.
He disclosed this at a stakeholders’ engagement on the implementation of the Kumasi Kejetia Market Redevelopment Phase II on Sunday. The engagement comes shortly after Mr. Ayariga inspected the Kejetia Phase II and Krofrom Market projects during a working visit to Kumasi on August 30.
The inspection was aimed at assessing the current state of the projects, identifying the challenges behind the delays and exploring measures to facilitate the resumption and completion of the works.
The Kejetia Phase II project, which forms part of the redevelopment of the Kumasi Central Market, has faced prolonged delays, with construction suspended amid financial and contractual challenges.
Government said in May that the project was about 58.22 per cent complete when work was suspended, with engineering works reported to be substantially advanced. The original contract, awarded in 2018 at a cost of €248 million, has since seen its projected cost rise to about €305.3 million due to delays, suspension claims and other outstanding financial obligations.
The second phase of the project is expected to house 6,500 leasable commercial spaces, 5,400closed stores; 800 kiosks, 50 restaurants and 210 fishmonger and butcher stores and 40 livestock stores among others, as well as provide 900 direct jobs and 2,500 indirect jobs to improve the lot of residents.
The Phase II development is intended to complement the existing Kejetia facility by providing additional commercial spaces and improving trading conditions in one of Ghana’s major commercial centres. The project is expected to provide thousands of trading spaces and create direct and indirect employment when completed.
The redevelopment of the Kumasi Central Market at €248 million is being financed by the Deutsche Bank of Germany, with export credit guarantee from the United Kingdom Export Finance (UKEF).
Former President Nana Addo Dankwa Akufo-Addo, cut the sod for the €248-million facility on May 2, 2019 for completion in 36 months, but was delayed due to initial constraints, congestion and difficulties in acquisition of project site.
The previous government’s debt restructuring programme and the broader financial constraints associated with Ghana’s economic difficulties have been cited by the government as contributing to the inability to settle outstanding Interim Payment Certificates, resulting in the demobilisation of the contractor.
But Minister Ayariga has assured that the government was committed to ensuring that the facility is completed for use by market women and is seeking support to complete Phase II to pave the way for Phase III to commence.
He noted that government could not provide additional funds to the Ministry, but through open and collaborative work, revenue accrued from Phase II would be used to complete Phase III.
He said discussions would also focus on how to agree on the proper value of stores and spaces through negotiations with the private entity responsible for revenue collection.
Mr. Ayariga pledged to work with the Kumasi Metropolitan Assembly, contractors and other stakeholders to address the outstanding challenges and facilitate the completion of the project.
Mr Richard Ofori Agyemang Boadi, the Mayor of Kumasi, said the project was dear to the President and government and that they are committed to giving it all the necessary attention.
He explained that the initial decision was to mobilise revenue from Phase I to fund the Phase II project, but because of lack of transparency in the management of Phase I, the Assembly could not accrue the expected revenue for Phase II.
According to him, the government has done the needful and borrowed €248 million to resume work on Phase II and called on stakeholders to contribute to ensure the project is completed. He expressed the view that the deliberation must be one that helps everybody, and urged them to allow President Mahama’s legacy to impact Kumasi positively.
He expressed concern over the attitude of some shop owners who acquired their shops for GH¢25,000 and rent them out for GH¢80,000 to GH¢100,000. He assured shop owners that no government official will be involved in the pricing of stores and that a private entity will be responsible for collecting monies instead of government.
The mayor has given an ultimatum to those who owe for stores in Phase I to pay their arrears before December 31, 2026, or risk losing them.
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