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07.04.2008 Business & Finance

Do Not Award Road Contracts Outside Approved Budget - Minister

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Dr Richard Winfred Anane, Minister for Transportation has directed heads of road agencies not to award contracts outside approved budget for 2008 without approval from the ministry.  He noted that failure of road agencies to prioritise road projects within approved budgets had resulted in Government owing road contractors 85 million Ghana cedis for work executed in 2007.
Dr Anane gave the directive in an address read on his behalf by Mr Magnus E. Opare-Asamoah, Deputy Minister for Transportation at the annual management seminar of Department of Feeder Roads in Koforidua.  The two-day seminar was under the theme: 'Rationalized Programmes Lead to Efficient Road Management'.
 Dr Anane said, the Roads Prioritization Methodology (RPM) being implemented by the department was appropriate and a laudable initiative as a tool for prioritizing roads to be developed.
'I would therefore like to encourage and urge you to implement the RPM in the selection, planning and award of contracts within the prescribed budget and tender ceilings'. He said the feeder road network had witnessed a consistent and an appreciable increase in length from 32,600 kilometres in 2001 to 41,000 kilometres in 2007 adding that the phenomenal growth was indicative of government's commitment to provide basic access to the productive areas of the economy.
Mr Elvis Asafo-Adjei, Director of Department of Feeder Roads said it had an important role to play in achieving Government's vision of attaining a middle income status by 2015. He said the seminar was to strategise to reduce the current over-commitment of funds under the Road Fund and adopt measures to ensure future programmes were implemented within the budget.
Mr Asafo-Adjei advised regional managers of the department to take keen interest and ensure that environmental issues were assessed during project planning stages and mitigation measures implemented during the construction period.
Mr Kwadwo Affram Asiedu, Eastern Regional Minister said good road network was ideal to help transport foodstuffs to marketing centres.

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