Government Terminates 84-km Road Contract
Government has impeded a contract it awarded Shiraco Investment for the construction of the 84-kilimetre Tamale-Nanton-Karaga road, citing 'poor performance' as its basis.
According to government the contract which was expected to be completed by the end June is only 7 percent complete.
This was disclosed by the Minister for Roads and Transport, Joe Gidigu when he appeared before Parliament to answer questions on the state of roads awarded on contract by government.
The 392,175 Ghanaian cedis contract was awarded in December last year for re-gravelling under the Ghana Highway Authority's periodic maintenance programme.
The Minster observed that due to the poor nature of work done, especially at the Tampion Dam to Zilindu stretch, it has recommended for the termination of the project to allow for re-awarding.
He announced that the remaining stretch will be maintained under the Authority's routine maintenance programme for this year adding that government will open bids for the reconstruction of the road July 2009.
Mr Gidisu also revealed that government through the ministry has issued a final warning to Ladco the contractor working on the Goaso-Ayomso feeder road to complete work or risk the contract noting that only 13 per cent of the work has been completed although it should have been completed in April this year.
Meanwhile the House has approved a petroleum agreement between the government of Ghana, the Ghana National Petroleum Corporation (GNPC), Vanco Ghana Limited, and Lukoil Overseas Ghana Limited to explore oil in the Cape Three Points Deep Water Block.
Under the Agreement, Lukoil will be the majority stakeholder with 56 percent, followed by Vanco with 28 and the GNPC 15 percent. The GNPC will also have the sole right to any gas discovered during the exploration.
Before its approval the minority raised issues of conflict of interest and contended that the GNPC boss Nana Boakye Asafu-Adjaye might compromise the nation's interest because he worked with VANCO for consult for Vanco but MP for Ave Avenor Doe Adjaho argued that Ghana's interest will not be compromised since Mr Asafu-Adjaye no longer works for Vanco.