The Kejetia market redevelopment project phase 2 has become a hot topic of discussion in both mainstream and social media, sparking a debate between the incumbent government, the New Patriotic Party (NPP), and the opposition party, the National Democratic Congress (NDC).
Despite the construction of the project coming to a halt due to insufficient funding, the Akufo-Addo government proudly claims that it is part of the NPP’s initiative. However, the NDC has repeatedly refuted these claims, asserting that the project is actually part of Phase 1, which was completed under former President Mahama’s administration.
During a roundtable discussion on Oyerepa TV on Thursday, October 12, 2023, the NDC communication director for the Ashanti Region, Abass Nurudeen emphatically stated that the Kejetia Market Phase 2 project, which the NPP claims ownership of, is actually part of the Phase 1.
He explained that when the Mahama administration awarded the project to the Brazilian construction company, Contracta Engenharia, it was agreed that the project would be completed in two phases (Phase 1 and Phase 2).
“Kejetia Phase 2 is not Akufo-Addo’s project. The entire Kejetia-Central market project was conceived as a unified endeavour during Mahama’s time. However, the traders expressed concerns that if the project were to be executed all at once, many of them would be unable to work. Consequently, we decided to divide it into two distinct phases: phase 1 and phase 2,” he explained.
Kejetia Market Redevelopment Project
In February 2015, the Parliament of Ghana approved a financing of US$270 million for the redevelopment of Kumasi Central Market and the Kejetia lorry terminal in Kumasi. The construction of the market infrastructure marked the first phase of the project, commencing in July 2015 and involving the relocation of vehicles to a new location. By the end of 2018, this initial stage was nearing completion, setting the stage for the second and third phases – the actual redevelopment of the market.
Collaborating with Brazilian construction company Contracta Engenharia Ltda, Ghana’s Ministry of Finance acted as the borrower under a financing package led by Deutsche Bank in September 2014. This package included a nine-year covered facility of US$135 million from SAIN, the Brazilian ECA, to finance goods and services exported from Brazil, as well as an eight-year commercial loan of US$37 million. Building on the success of the 2014 financing, Deutsche Bank arranged a five-year commercial loan of US$97 million in 2016 for the financing of Tranche Two of Phase One of the Kumasi Market redevelopment project. Contracta had established a strong presence in Ghana through the successful completion of the Accra aircraft hangar project in 2013, which showcased its competence and capability to the buyer – the Ghanaian Government’s Ministry of Defence (with the borrower being the Ministry of Finance).
Towards the end of 2018, funding for Tranche One of Phase Two of the project was secured through a signing between the Ministry of Finance of Ghana (the borrower) and Deutsche Bank, amounting to €92 million. This time, the contractor was Contracta Engenharia Ltda’s subsidiary in the UK, Contracta Construction UK Ltd, which was established to source equipment and services from the UK supply chain and access competitive UK government-backed funding. As a result, UKEF guaranteed a facility of €80 million for a 12-year period.
Source: Oyerepafmonline.com / Joseph Marfo
