The Public Interest and Accountability Committee (PIAC) has voiced apprehension regarding the prolonged delays in the disbursement of funds for projects financed by oil revenue nationwide.
Emphasizing the adverse repercussions on the punctual culmination of these vital endeavors, the committee underscores the pressing need for prompt resolution.
Following a thorough examination of projects partially funded by the Annual Budget Funding Amount (ABFA) – the allocation of oil revenue dedicated to supporting the national budget, the Public Interest and Accountability Committee (PIAC) has expressed apprehension over a persistent pattern of delayed payments.
This concern came to the forefront during on-site inspections in Accra, where contractors emphasized the impact of these delays on the progress of the projects.
PIAC, serving as a public overseer for the utilization and administration of oil revenues, has asserted that the blending of petroleum funds with other resources for projects, resulting in prolonged delays, is not indicative of judicious management of oil revenues.
In its pursuit of ensuring timely project completion, the Committee is advocating for the prompt and ample allocation of petroleum revenues explicitly designated for project funding.
Top of Form
The Committee’s Chairperson, Emerita Professor Ardayfio-Schandorf, lamented that the sums allocated to some ongoing infrastructure projects are woefully insufficient.
She said the allocated funds, which are channeled to these projects through the ABFA, do not represent significant contributions to these projects’ total funds.
PIAC, she said, will continue to make its case for more prudent use of oil revenue, to ensure enough funds are committed to complete earmarked projects.
Furthermore, she said the Committee remains committed to promoting transparency and accountability in the management of oil revenues, as enshrined in the Petroleum Revenue Management Act (PRMA).
Inspection
In the Greater Accra Region, PIAC inspected the Rehabilitation of selected roads in Teshie Camp, Southern Command and MATS (Ghana Military Academy); construction of Teshie Link; and construction of a flyover at the Tema Motorway from the Spintex Road Flowerpot Roundabout.
These three projects, located in the Ledzokuku municipality, are at different stages of completion and received funds from the ABFA between 2019 and 2022.
The contract for rehabilitating roads, constructing a car park and parade ground within the Southern Command in Teshie was awarded in July 2020 – and was supposed to have been completed within 24 months. But at the time of PIAC’s visit, the project was only 24 percent physically complete.
Of the GHS145.8million total contract sum, GHS7.4million of petroleum revenue representing 5.07 percent was disbursed to the project in 2022.
With the construction of the 7.5-kilometre Teshie Link, it was disclosed that the project involved constructing a new road and drainage structures, with earthworks and asphaltic-concrete surfacing.
The project was awarded in October 2019 and had an original contract duration of 18 months. Of the GHS87.9million original contract sum, GHS29.7million of petroleum revenue representing 33.84 percent was disbursed to the project from 2019 to 2021.
At the time of PIAC’s visit, 95 percent of all drainage works had been completed, together with the asphaltic binder and wearing course laid on the road.
However, the PIAC team was informed that the contractor suspended work due to non-payment of funds. Outstanding work includes installation of traffic signals and road markings to ensure a controlled intersection. The absence of these has resulted in many car crashes in the area.
Similarly, on the construction of the flyover over the Tema Motorway from the Flowerpot Roundabout, of the revised GHS284.7million contract sum, a total GHS141,093,767 representing 49.56 percent was disbursed from the ABFA in 2022.
The project is located at the Flowerpot Roundabout, Spintex, and East Legon; and involves creating access from the Motorway to Boundary Road Roundabout and an exit into Cantonments from the Giffard Road Interchange. It consists of one mainline bridge, two ramp-bridges, four auxiliary roads and ancillary works.
At the time of PIAC’s visit, the infrastructure was estimated to be about 70 percent complete. Similar concerns about delays in releasing funds were reported at all projects sites.