Sofoline Interchange: Contractor Refused To Return To Site After Payment Of ₵100Million; Simon Osei Mensah Discloses

The Ashanti regional Minister, Simon Osei Mensah has disclosed that Messrs China Geo Engineering Corporation refused to return to work on the Sofoline interchange after the Minister for Roads and Highway paid GH₵100 million for debts incurred as a result of the delayed Interim Payment Certificate.

The project started during the regime of former President John Agyekum Kufuor but stalled after he left office in 2009.

Speaking about the project at a Press Conference, the Minister said it is “financially in two components. One component is cedi another component is dollars. After every 90 days of issuance of the Interim Payment Certificate (IPC), when it’s not paid, the contractor will apply for interest for delayed payment so while we were not continuing with the project, we were still paying interest on outstanding IPCs.

“As the cedi depreciates we had to cough more money to pay for the dollar aspect. So we met huge debt and we needed to sit down and negotiate. Initially, we thought we could pay something small for them to return to site. The minister for roads and highways helped us and paid 50 million.

“After the payment, the contractor said the amount was a drop in the ocean and he (Roads Minister) assisted us with another 50 million and he (the contractor) said no, he (the contractor) is not going so we needed to sit down with them (the contractor) and come out with a financial arrangement with them which made them return to site”.

Osei Mensah noted that the project is left with 500 metres of road to complete.

This, he said will be financed by the USD 35, 000,000 allotted out of the USD750 million Afrexim Bank loan to the government of Ghana.

The Minister also disclosed that interchanges will be constructed at the Bekwai roundabout and the Komfo Anokye Teaching Hospital roundabout when the Sofoline interchange is completed.

“The sofoline interchange which was started by former president Kufour’s regime also had other interchanges included. One is the Bekwai Round-about interchange, the Gee roundabout interchange. So if the Sofoline roundabout is finally completed, it means we have an interchange at the Bekwai roundabout and the Komfo Anokye Teaching Hospital”.

Source: opemsuo.com,/Hajara Fuseini