Contractor for Takoradi Market Circle demands €30m because of suspension of project

• Posted on September 3, 2025September 3, 2025
• by Nana Kwesi Coomson
• Comment

The Mayor of Sekondi Takoradi, Frederick F. Faidoo, has revealed that the contractor working on the Takoradi Market Circle reconstruction project, Contracta Construzioni Italia S.R.L, is claiming an amount of €30 million in fees for costs incurred due to the suspension of the contract.

According to the Mayor, the Finance Minister has negotiated this amount down to approximately €18 million.

The Takoradi Market Circle Reconstruction Project was suspended in March 2023 as part of a government decision to meet conditionalities set by the International Monetary Fund for a bailout.

The contractor is seeking payment of the claimed amount to compensate for costs incurred during the two-year suspension period.

Speaking exclusively on Media General’s Takoradi-based radio station, Connect FM’s Asem Yi Dzi Ka show on September 2, Mr. Faidoo explained that “the project, had everything as planned, should have been completed within that two-year period as the necessary financial arrangements were already secured.”

He added, “The contractor had no choice but to demobilize from the site. At the time the project was suspended, almost the entire contract sum had been paid. When the new administration took over, the outstanding balance was cleared, but they are now demanding a fee in excess of €30 million for the suspension period, claiming they incurred costs. The Ministry of Finance negotiated this down to about €18 million, but this is still a significant amount.”

Second Phase Underway

As work on the main project progresses, the Assembly is exploring ways to develop the periphery of the main market. According to the Mayor, a feasibility study has already been conducted to advise the government on suitable financing models and design for the second phase.

Mr. Faidoo also mentioned that the government is considering a financing arrangement with the African Development Bank (AfDB) for this next phase.

“There is ample space around the main market. Several investors have expressed interest in the project, and some have even completed feasibility studies,” he added.

-3News