Mr Yaw Osafo-Maafo, the Senior Minister, has expressed worry about undue delays by some public officials in processing project documents and payment of projects executed by contractors.

He said delays cost the nation huge sums of money through cost overruns and payment of high-interest rate on projects.

“Mr Minister of Finance, if you were to think through how much delays in payment has cost us, it’s phenomenal!

“Our interest rate has been hovering around 25 per cent and so if you borrow US$10 million, equivalent to GH¢10 million at 25 per cent, the cost of money is GH¢2.5 million or dollars per annum.

“Assuming the money is available and they delay in the processing between the Minister of Education and Minister of Finance for one month, you’re adding one of 12 of the 2.5 million, which is GH¢208,000 or dollars depending on which currency you’re dealing with,” Mr Osafo-Maafo observed.
The Senior Minister expressed those concerns at the ‘Value for Money Conference’ in Accra yesterday.

The event, organised by the Vice President’s Secretariat, is intended to provide standardised cost for public projects and prevent financial wastage and brought together experts from academics, captains of industry and civil society organisations to find solutions to variations in project values in the construction of roads, schools and hospitals.

Mr Osafo-Maafo said the cost of every project worldwide depended on a number of factors, including capital, materials, labour of different types and time; therefore, it was imperative for the nation to standardise cost of public projects.

He urged the committee set up to look into the matter to come out with recommendations that would ensure standard cost for public infrastructure projects.

The Senior Minister made reference to the World Bank’s Study, which revealed that project delivery inefficiencies cost the nation US$1.1 billion per annum.

He, therefore, asked all public officials to strictly apply the provisions in the Public Procurement Act, which required public officials to ensure judicious, efficient and economic use of resources.