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04.10.2008 Regional News

Parliamentary Select Committee on Roads impressed with work in the Volta Region


The Parliamentary Select Committee on Roads and Transport on Friday said it was highly impressed by the performance of road contractors and road sector agencies in the Volta region.

The committee was of the view that, the quality of work in the region was exemplary compared to the rest of the country.

It however recommended the termination of the contract awarded to Messrs Gallant on the 16.1 kilometre Juapong- Volo road for non-performance and abandonment of the project.

It also recommended that the contractor's performance bond be forfeited to the state, while action was taken to re-award that contract to another contractor.

Mr Albert Obbin, Chairman of the Committee gave these impressions on behalf of members at the end of its week-long inspection tour of 19 road projects in the region, the last of such tours of the country.

The Committee observed that road contractors in the country generally were reeling under the pressure of high interests on loans contracted from the banks due to delays in payment for work done.

It observed that local road contractors were worse off under the circumstances for not applying for interest on delayed payments as provided in their contracts for fear of being blacklisted.

Foreign road contractors were however taking advantage of the provision, but complained that the 18 per cent interest on delayed payments was far below the 27 per cent interest they paid on loans contracted from the banks.

The Committee therefore called for prompt payment for work done and for contractors to apply for payment as and when they completed a particular job in their contracts to facilitate early payment.

The Committee also called on the Minerals Commission to expedite work towards granting license to the contractor undertaking the Asukawkaw-Dambai road, which was already three months behind time.

It called on road sector agencies to share information on non-performing contractors, so that they do not abandon work under one agency only to be awarded by another agency.