The Millennium Challenge Corporation (MCC) and the Government of Ghana signed a Compact to increase the production and the productivity of staple food crops and to enhance the competitiveness of high-value cash crops. The irrigation development activities provided new facilities, organizational and management improvements, to enhance the value chains in both local and international markets.
Work completed by the previous consultant included feasibility studies, detailed designs and tender documentation, ESIA, RAP and O&M system proposals, leading to the tendering and award of two construction contracts for Phase I of the Kpong Left Bank Irrigation Project (US$ 16million over 35 months) and the Kpong Piped Irrigation Water Scheme (US$ 2million over 13 months).
From the very start of the contracts, the inexperience of the two contractors was evident by difficulties and delays in obtaining and submitting contractual documentation, method statements and working drawings, and a detailed programme and cashflow forecast for the works. As a result, the projects were significantly delayed, beyond the Compact period, resulting in a change the source of funding from MCC to the Government of Ghana and with the imposition of Liquidated Damages to offset the additional supervision costs.
Following completion of construction, there were numerous construction defects and complex administrative and contractual issues that needed to be addressed in order for MiDA to close-out the contracts.