The government is committed to finishing two major market redevelopment projects in Kumasi and Takoradi. Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, stated this commitment. These projects are Kejetia Phase II in Kumasi and the Takoradi Market Circle. They are considered crucial for economic growth in Ghana.
These markets are busy centres for trade. They provide income for many people. Traders, artisans, transport operators, and small businesses rely on them. Work stopped in 2024. This happened because contractors were not paid for work done. They were not paid their Interim Payment Certificates (IPCs). This led contractors to stop work and remove their equipment. The previous government's debt restructuring policies caused problems. This led to large claims for unpaid work. Key parts of these projects remain unfinished.
The halt has caused problems. It has led to crowded market spaces. Trading conditions have become unsafe. Many traders have lost income. Public money invested in the projects is not being used fully. This is a significant economic issue for these cities. Phase One of the Kumasi Central Market was finished earlier. It started in 2014 under President John Dramani Mahama. That phase cost over 259 million US dollars. This shows the scale of past investment in market infrastructure.
Phase Two of the Kumasi market is a large undertaking. It was awarded in December 2018. The total contract value was 248 million euros. Before work stopped, the project was 58.22 percent complete. Engineering tasks were almost finished, at 99 percent. Procurement activities reached 77 percent. Actual construction work was at 35 percent. Financially, about 171 million euros was paid to the contractor. The total assessed amount was over 203 million euros. This left outstanding payments. Additional claims for suspension also increased costs. The revised total cost for Phase Two is now over 305 million euros.
The Takoradi Market Circle project also faces delays. It started in April 2020. The initial cost was 48 million euros. This project was 81.62 percent complete before suspension. Engineering works were fully finished. Procurement was nearly 89 percent done. Construction was just over 62 percent complete. More than 41 million euros has been paid. There is still an outstanding balance of over 6 million euros. This money still needs to be paid to the contractor.
Despite these challenges, the government is determined to finish. Minister Ahmed Ibrahim outlined the plan. They will seek new financing. They will talk to the contractors again. Project monitoring will be made stronger. Close work with traders and local leaders is planned. This will help ensure smooth restart and completion. Completing these projects will boost the economy. It will increase revenue for city authorities. It will also create more jobs. This aligns with the government's goal for a 24-hour economy.
The Minister assured traders and residents. Their worries are being addressed. The government is working hard. They aim to provide modern and safe markets. Finishing these projects is essential. It protects public money. It will restore economic life. It will improve people's lives. The public is asked for patience. Support is needed to finish the work quickly. This press conference aimed to provide clarity. It reaffirmed the government's commitment to development goals.