The government requires parliamentary approval to pay an additional €18 million in compensation to the contractor of the stalled Takoradi Market Circle Redevelopment Project before work can resume, the Sekondi-Takoradi Metropolitan Chief Executive, Lawyer Frederick Faidoo, has disclosed.
Speaking during a media engagement in Sekondi, the MCE explained that concerns over the completion of the Takoradi Market Circle project should be directed to central government, stressing that the project is not being executed by the Sekondi-Takoradi Metropolitan Assembly (STMA).
According to him, STMA is only a beneficiary of the project, while all contractual and financial decisions are being handled by the central government.
“Seeking answers from the Assembly regarding the completion of the Takoradi Market Circle project is misplaced because it is purely a central government project. The Assembly is only a beneficiary,” he stated.
Lawyer Faidoo revealed that the government is currently seeking parliamentary approval for an additional €18 million to compensate the contractor following the prolonged suspension of works on the project.
The Takoradi Market Circle Redevelopment Project was funded through a €48 million facility, which had already been secured before the previous New Patriotic Party (NPP) administration assumed office. However, construction works were halted in 2022 when Ghana entered negotiations with the International Monetary Fund (IMF) for economic support amid a worsening fiscal crisis.
Providing details on the financial commitments made so far, the MCE said approximately €42 million had been paid to the contractor before the project was suspended.
“By the time the project was halted, €42 million out of the total contract sum had already been paid to the contractor. When the new NDC administration came into office, the remaining €6 million under the original contract was quickly settled,” he explained.
However, the contractor reportedly rejected the final payment as a basis for resuming work, arguing that the government had breached the contractual agreement by suspending the project for more than two years.
According to the Mayor, the contractor initially demanded €36 million as compensation for losses and additional costs incurred due to the suspension.
“The contractor indicated that because the project had been halted for over two years, there were additional costs arising from the breach of contract. Initially, they demanded €36 million in compensation,” he said.
He added that extensive negotiations led by the Ministry of Finance succeeded in reducing the compensation claim by half.
“Through the intervention of the Ministry of Finance, the figure was negotiated down from €36 million to €18 million. Government is currently awaiting parliamentary approval for that amount so work can resume on the project,” he noted.
The Mayor expressed optimism that the long-delayed redevelopment project would eventually be completed, citing assurances from President John Dramani Mahama.
He recalled the President’s commitment to the people of Takoradi to ensure the completion of the modern market facility and pledged that city authorities would continue to advocate for the fulfillment of that promise.
“President John Dramani Mahama has assured the people of Takoradi that the Market Circle project will be completed. As city managers, we will continue to remind government of that commitment until the project is fully delivered,” Lawyer Faidoo stated.
The Takoradi Market Circle Redevelopment Project, one of the largest urban renewal initiatives in the Western Region, has remained stalled for several years, drawing concerns from traders and residents who have eagerly awaited its completion.
