The Minister for Local Government, Chieftaincy and Religious Affairs, Mr. Mahama Ayariga, has announced that contractors will resume work on the Kejetia Market Redevelopment Phase II project in October. The project had stalled last year due to financial constraints, but the government has secured 248 million Euros to resume work. This was disclosed at a stakeholders' engagement on the implementation of the Kumasi Kejetia Market Redevelopment Phase II.
The engagement follows an inspection of the Kejetia Phase II and Krofrom Market projects by Mr. Ayariga on August 30. The inspection aimed to assess the project's current state, identify challenges, and explore measures to facilitate resumption and completion. The Kejetia Phase II project, part of the Kumasi Central Market redevelopment, had faced prolonged delays due to financial and contractual challenges.
When work was suspended, the project was 58.22 percent complete, with engineering works substantially advanced. The original contract, awarded in 2018 at a cost of €248 million, has seen its projected cost rise to about €305.3 million due to delays and outstanding financial obligations. The second phase will house 6,500 leasable commercial spaces, 5,400 closed stores, and other facilities.
The project is expected to provide 900 direct jobs and 2,500 indirect jobs, improving the lives of residents. The Phase II development aims to complement the existing Kejetia facility by providing additional commercial spaces and improving trading conditions in Kumasi, a major commercial center in Ghana. The redevelopment of the Kumasi Central Market is being financed by the Deutsche Bank of Germany, with export credit guarantee from the United Kingdom Export Finance.
The project was initiated by former President Nana Addo Dankwa Akufo-Addo, who cut the sod on May 2, 2019, for completion in 36 months. However, the project faced delays due to initial constraints, congestion, and difficulties in acquiring the project site. The previous government's debt restructuring program and Ghana's economic difficulties contributed to the inability to settle outstanding Interim Payment Certificates.
Minister Ayariga assured that the government is committed to completing the facility for use by market women and is seeking support to complete Phase II to pave the way for Phase III. He noted that revenue accrued from Phase II would be used to complete Phase III. Discussions will also focus on agreeing on the proper value of stores and spaces through negotiations with the private entity responsible for revenue collection.
Kumasi Metropolitan Assembly Mayor, Mr. Richard Ofori Agyemang Boadi, emphasized the project's importance and the government's commitment to giving it attention. He expressed concern over some shop owners who acquired shops for GH¢25,000 and rent them out for GH¢80,000 to GH¢100,000. The mayor gave an ultimatum to those who owe for stores in Phase I to pay their arrears before December 31, 2026, or risk losing them.
Key points
- The government has secured 248 million Euros to resume work on the Kejetia Market Redevelopment Phase II project.
- The project is expected to provide 900 direct jobs and 2,500 indirect jobs.
- The contractors are expected to resume work on the project in October.
