Kumasi-Ghana, Aug. 24, GNA – Residents along the Hwidiem-Kenyasi road stretch in the Ahafo Region, are calling on Newmont Ghana Gold Limited (NGGL), to release funding for the completion of the project, for easy access to the area.
They want the mining firm to honour its pledge to fix the 8.2-kilometre road as contained in its agreement with the Government of Ghana, by releasing the required funds to complete the project.
The team, led by Mr Patrick Banor, the Ahafo Kenyasi Development Association and the Member of Parliament (MP) for Asutifi North, believe the project had stalled, due to Newmont’s refusal to release additional funding for the contractors to complete the work.
A letter from the Ghana Highway Authority (GHA) available to the Ghana News Agency (GNA), said the contract was awarded to Kofi Job Construction at an initial cost of GHS 70.3 million.
The letter said the physical and price contingency in the contract amounted to GHS 14,019536.30, bringing the total cost to GHS 95.4 million.
“Another issue is the cost overrun due to earthworks,” and this had overrun the initial Bill of Quantities to the tune of about GHS 20,348,360.00.
This was due to the instruction to use rock fill to stabilise the soil, part of the letter read.
Nana Kwasi Agyemang, the Acting President of the Ahafo Kenyasi Development Association, told the Ghana News Agency that, due to the earthmoving equipment of the company, it had agreed to pay for the contractor to fill the base of the road with rocks.
He said that additional work coupled with the exchange rate lost increased the cost of construction, thereby stalling the project.
It was for this reason that why the Association was calling on the company to honour its commitment as contained in the agreement with the government to enable the contractor to return to site.
Outstanding work to complete the road, according to the GHA letter, is 2.9 kilometres and access roads totalling 1.83 kilometres, and the cost to complete the road is estimated at GHS 35,574,346.46.
“This amount includes an estimate of GHS 13,940,839.81 for exchange rate losses,” the letter further revealed.
Nana Kwasi Agyemang applauded Newmont for paying the GHS 95.4 million for the contractor to execute the work done so far and called on them to release the outstanding GHS 35,574,346.46 to complete the project.
He said the Hwidiem-Kenyasi road was critical to the local economy of the Ahafo enclave and made a passionate appeal to Newmont to prioritise the welfare of the people in their operational areas.
The MP who had been engaging officials of the Roads Ministry and GHA on the matter, said the two institutions had confirmed that the outstanding amount needed to complete the project was the obligation of Newmont.
He entreated the company to release the money to avoid deterioration of the work done already.
