08.03.2005 Business & Finance

Exchange rate delays progress on six road projects

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Accra, March 8, GNA - Dr Richard Anane, Minister of Roads and Transport, on Tuesday noted that the rate of progress on six road projects had slowed down due to the depreciation of the dollar against the Euro.

He said the depreciation of the dollar affected the cash flow and the purchasing power of most contractors who purchase their products from Europe.

Dr Anane was speaking during a bilateral meeting with a German government delegation on projects Germany is financing.

It includes Tepa - Mankraso, Ejisu- Kuntanse, Bekwai- Aframso, Sekyedumase- Nkoransa and Ejura - Nkoransa- Wenchi, Bamboi- Sunyani and Ntotroso -Acherensua roads.

The Minister said the contract price adjustment did not fully cover losses due to price variations.

Dr Anane said the projects needed additional funding of about 30 million Euros if the contracts were terminated and re-awarded and 10 million Euros if contractors on the project are supported to make up for the shortfall.

He appealed to Germany to help complete the Achimota - Ofankor road and the Tetteh Quarshie- Madina and the Tetteh Quarshie -Mallam roads to ease traffic.

He also asked for support for the National Road Safety Commission, Building and Road Research Institute, Motor Transport and Traffic Unit, Driver and Vehicle Licensing Authority and the upgrading of the Axle load control stations.

Dr Anane said the Ministry was collaborating with the Ministry of the Interior to set up a Road Traffic Police Unit to help reduce road accidents.

He commended the German government for the support they had given to the country.

Dr Andreas Pfeil of the Ministry for Economic Cooperation and Development in German, said his country would support the Achimota - Ofankor road project.

He said Germany was developing financial modules for the project while waiting for the Ghana government to come up with the final cost in May.

Dr Pfeil urged the government to find co-financing donors to contribute to the project.

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