Delays in settling contractor invoices have repeatedly disrupted engineering works under the World Bank-funded Greater Accra Resilient and Integrated Development (GARID) initiative.
This admission follows recent severe flooding that submerged extensive areas of the capital.
GARID Project Coordinator Ohene Sarfoh attributed the disruptions to cash-flow constraints and exchange-rate fluctuations, which hindered the processing of interim payment certificates.
“Partly because of this… exchange and conditionality and so on, that affected financing at some point reduced drastically [the speed at which] their invoices [were] being processed,” he stated.
He indicated that measures have now been implemented to streamline disbursement, with the project focusing on clearing outstanding bills immediately when capital is secured.
“As and when we see funds, we quickly pay out, and then they are also working. So it’s an ongoing thing,” he remarked.
Dr Sarfoh conceded that these financial bottlenecks have directly compromised project schedules, leading to temporary site closures.
“At some point, we have experienced some stoppages of work by contractors because their funds have not been paid,” he revealed.
The coordinator noted that although the contractual framework permits a 60-day window to honour certified claims, builders typically anticipate swifter remuneration, creating friction that compromises progress.
“Most contractors would want that once I raise my invoice this week, next week I should get paid. But the contract provides that we can pay within 60 days,” he observed.
By: Rainbowradioonline.com/Ghana