Ghana's First Sky Construction Limited Contract Remains Unsigned, Halting Berekuso-Kwabenya-Kitase Road Projec

• First Sky Construction Limited claims it cannot proceed with the Berekuso-Kwabenya-Kitase road project due to an unsigned contract.
• The contractor is investing heavily in the project without necessary documentation to support payment claims.
• The Kuwait Fund for Arab Economic Development and the Government of Ghana are stakeholders in the $35 million project, which has faced delays since its commencement in July 2022.

The contractor's position comes amid renewed concerns from residents and businesses over the prolonged delay in completing the road, which they say has affected transportation, businesses and the general quality of life in the area.

The Berekuso-Kwabenya-Kitase road project, initially expected to be completed within two years, has been plagued by delays. The latest setback comes from First Sky Construction Limited, the contractor responsible for the project's execution. According to Engineer Nicholas Tieku, Project Manager of First Sky Construction Limited, the company is unable to proceed with the works due to an unsigned contract. This development has left residents and businesses along the Berekuso-Kwabenya-Kitase corridor frustrated over the deteriorating state of the road.

The project's funding arrangement, which includes a $35 million investment from the Kuwait Fund for Arab Economic Development and the Government of Ghana, is also facing challenges. The contractor claims that it cannot raise Interim Payment Certificates without the signed contract, hindering its ability to recover invested funds. This situation has raised concerns about the project's sustainability and the contractor's capacity to meet its obligations.

The unsigned contract at the center of the controversy is a 24-month agreement between First Sky Construction Limited and the Government of Ghana. The project was awarded in July 2022, with expectations that it would be completed within two years. However, the contractor's return to site in January this year was based on the assumption that the contractual arrangements would be regularized subsequently. Unfortunately, this has not been the case.

The Berekuso-Kwabenya-Kitase road project is not only a critical infrastructure development but also a significant investment for the Government of Ghana and the Kuwait Fund for Arab Economic Development. The unsigned contract and funding challenges facing First Sky Construction Limited have raised concerns about compliance exposure, payment claims, and funding arrangements. Lawyers advising on the project should be aware of these potential issues to ensure that their clients' interests are protected.

The prolonged delay in completing the road has already affected transportation, businesses, and the general quality of life in the area. The contractor's position highlights the need for timely resolution of the contractual and funding arrangements to prevent further delays and ensure the project's successful completion.

Lawyers advising on the Berekuso-Kwabenya-Kitase road project should be aware of the potential compliance exposure arising from First Sky Construction Limited's claim that it cannot proceed with the works due to an unsigned contract, which may impact payment claims and funding arrangements.

Source: Original reporting via Stephen Aryeetry Mensah