Tamale-Walewale Road: Deliver or refund $30m payment – Agbodza tells Contractor

The Minister for Roads and Highways, Governs Kwame Agbodza, shared updates on the Tamale-Walewale Road project. Progress is currently at just one percent. This is despite a $29.6 million payment to JMC, now called Kalpatura Projects.

During a Parliament session on June 5, the Minister explained that this payment is 20 percent of the total contract. The contract amount for the first phase is $158 million. This phase runs from Savelugu to Walewale.

The project was supposed to start in June 2022 and finish by December 2025. However, on March 11, 2024, the contractor issued a notice to terminate the contract. The Minister said the government is taking action to ensure the contractor meets its obligations.

He warned that failure to comply could lead to legal action. The documented project cost is $158.6 million, but the contractor claimed nearly $30 million already. The physical progress on site remains at only one percent.

This means they have not even finished clearing the site. Additionally, the contractor wants another $14 million for work not done. The Minister expressed frustration over paying this amount while owing Ghanaian contractors over GHC21 billion.

He emphasized that it’s disheartening to pay a foreign contractor while local ones remain unpaid. He assured that they will use legal means to ensure completion of work or recover their money.