News Guide Africa

Tag: Ghana Institution of Engineering (GhIE)

  • US$434m oil revenue injected into ‘Big Push’ road projects …as Engineering Council demands independent audit

    US$434m oil revenue injected into ‘Big Push’ road projects …as Engineering Council demands independent audit

    By Adnan Adams Mohammed

    The Public Interest and Accountability Committee (PIAC) has disclosed that approximately $434 million in oil revenue has been allocated to the government’s ambitious “Big Push” infrastructure programme.

    However, the spending is facing intense scrutiny as the Ghana Institution of Engineering (GhIE) calls for an immediate independent audit of the GH¢110 billion initiative.

    Oil Revenue Fueling Infrastructure

    In its latest report on the management and use of petroleum revenues, PIAC revealed that the “Big Push” a massive infrastructure development agenda aimed at debottlenecking Ghana’s road networks has become a primary beneficiary of the Annual Budget Funding Amount (ABFA).

    According to PIAC, the $434 million allocation represents a significant portion of the oil funds earmarked for capital investment. The committee noted that while the infrastructure development is necessary for economic growth, the concentration of funds into these specific projects requires heightened transparency to ensure value for money.

    Engineers Raise Red Flags

    The revelation of the funding scale has triggered a sharp reaction from the Ghana Institution of Engineering (GhIE). The professional body is demanding a comprehensive, independent technical and financial audit of the GH¢110 billion road programme.

    The GhIE expressed concerns over the selection process for projects, the cost-per-kilometer of the roads being constructed, and the overall quality of the work delivered so far.

    “We need to ensure that the Ghanaian taxpayer and our natural resources are being utilized efficiently,” a spokesperson for the GhIE stated. “An independent audit will provide the technical assurance that the designs are robust and that the costs allocated align with international engineering standards.”

    Calls for Accountability

    The convergence of PIAC’s financial reporting and GhIE’s technical concerns has sparked a broader debate regarding the governance of “Year of Roads” projects. Civil society organizations have joined the call, urging the Ministry of Roads and Highways to publish a detailed breakdown of the “Big Push” expenditures.

    PIAC has consistently cautioned against the “thin spreading” of oil revenues, but the “Big Push” represents a departure from that trend, focusing massive capital on specific corridors. The committee reiterated that while the scale of the investment is impressive, the impact must be felt in the lifespan and quality of the roads produced.

    Government Response

    While the Ministry of Roads and Highways has previously defended the “Big Push” as a transformative strategy to modernize Ghana’s transit system, it has yet to formally respond to the GhIE’s demand for an independent audit.

    As the 2024 election cycle approaches, the performance of the road sector remains a high-stakes issue for the government, with the “Big Push” serving as a centerpiece of its development narrative.

    For now, the focus remains on whether the government will open its books and construction sites to third-party evaluators to satisfy the growing demands for accountability in the use of Ghana’s “black gold.”

     

     

  • Road Sector Debt: GhIE urges Fin. Minister to prioritize portfolio ‘Downsizing’

    Road Sector Debt: GhIE urges Fin. Minister to prioritize portfolio ‘Downsizing’

    By Adnan Adams Mohammed

    The Ghana Institution of Engineering (GhIE) has issued a stern call to the Ministry of Finance to tackle the mounting financial exposure in the country’s road sub-sector, warning that persistent payment delays are threatening the quality and durability of Ghana’s infrastructure.

    Delivering the GhIE’s 53rd presidential address on Wednesday, the President of the Institution, Ing. Ludwig Annang Hesse, emphasized that the current financial strain on contractors and consultants has reached a breaking point, necessitating an immediate intervention from the central government.

    Restoring Financial Predictability

    Ing. Annang Hesse painted a sobering picture of the road sector, where stalled projects and escalating costs have become the norm due to erratic funding flows. He argued that the road sector’s current project portfolio far exceeds the government’s available resources, leading to a cycle of debt and delayed delivery.

    “The Ministry of Roads and Highways (MRH) and the Ministry of Finance (MoF) are urged to take decisive steps to resolve the financial exposure by reducing the project portfolio to levels consistent with available resources,” Ing. Annang Hesse stated. “The Finance Ministry must assume responsibility for outstanding contractor payments and negotiate structured settlements.”

    The GhIE President warned that these outstanding obligations do more than just slow down work they erode industry confidence and significantly increase the long-term cost of infrastructure as contractors factor in interest on delayed payments.

    A Call for Data-Driven Planning

    Beyond the immediate financial crisis, the GhIE called for a fundamental shift in how Ghana’s roads are managed. Ing. Annang Hesse made a specific appeal to the National Road Authority to institutionalize an integrated system for the routine collection of road traffic data.

    Reliable data, he explained, is the “indispensable” foundation for:

    Effective Planning: Ensuring roads are built where they are needed most.

    Maintenance Scheduling: Moving from reactive repairs to proactive preservation.

    Investment Decisions: Justifying the allocation of scarce national resources.

    Quality and Sustainability

    The GhIE President reminded the gathering that “sustainable road development requires more than just capital injections.” He stressed that adherence to strict engineering standards, transparent procurement, and value-for-money audits are essential to ensuring that road projects do not deteriorate prematurely.

    “Adherence to quality standards and timely disbursement of funds are essential to ensuring the durability of projects,” he noted, cautioning that without coordinated intervention, the nation risks a widening infrastructure deficit and skyrocketing maintenance costs in the future.

    The address comes at a time when the government is under pressure to balance aggressive industrialization goals (see related story) with the need to clear legacy debts in the construction sector. For the engineers at the frontlines of these projects, the message to the Finance Minister was clear: clear the debt, downsize the portfolio, and follow the data.