selected roads red · of the auditor-general on selected road works in ghana (1) tetteh quarshie to...

REPUBLIC OF GHANA

PERFORMANCE AUDIT REPORT

OF THE AUDITOR-GENERAL ON SELECTED

ROAD WORKS IN GHANA

(1) TETTEH QUARSHIE TO MADINA ROAD,

(2) AYAMFURI TO NEW OBUASE ROAD; AND

(3) THE BOLGATANGA, BAWKU TO POLIMAKOM ROAD

Our VisionOur Vision is to become a world-class Supreme Audit I n s t i t u t i o n d e l i v e r i n g professional, excellent and cost-effective services.

This report has been prepared in compliancewith Article 187(2) of the 1992 Constitutionof Ghana and Section 13(e) of the Audit Service Act, 2000 (Act 584)

Daniel Yaw DomelevoAuditor-GeneralGhana Audit Service28 November 2019

The study team comprised:Elliott Asiedu, Theophilus Eghan and Samuel A. Donkoh under the Supervision of Lawrence N. Ayagiba, Assistant Auditor-General and Benjamin G. Codjoe, Deputy Auditor-General in charge of Performance and Special Audits

This report can be found on the Ghana Audit Service website: www.ghaudit.org

For further information about the Ghana Audit Service, please contact:

The Director, Communication Unit Ghana Audit Service Headquarters Post Office Box MB 96, Accra.

Tel: 0302 664928/29/20 Fax: 0302 662493/675496 E-mail: [email protected]: Ministries Block 'O'

© Ghana Audit Service 2019

i |Performance Audit Report of the Auditor-General on selected Roads

TRANSMITTAL LETTER Ref. No. AG.01/102/Vol.2/132

Office of the Auditor-General Ministries Block “O”

P. O. Box MB 96 Accra

Tel. (021) 662493 Fax (021) 662493

GA-110-8787 28 November 2019

Dear Mr. Speaker,

PERFORMANCE AUDIT REPORT OF THE AUDITOR ON (1) TETTEH QUARSHIE

TO MADINA ROAD; (2) AYAMFURI TO NEW OBUASE ROAD; AND (3) THE

BOLGATANGA, BAWKU TO POLIMAKOM ROAD

I have the honour, in accordance with Article 187(2) of the 1992 Constitution of Ghana

Sections 13(e), and 16 of the Audit Service Act, 2000 (Act 584) to present to you a performance

audit report on selected roads.

The Government of Ghana invested GH¢ 8.24 billion in construction of new and upgrading of

old roads between 2012 and 2018 mostly funded by loans.

Ghana Highway Authority Act, Act 540 of 1997 mandates GHA, to design and supervise the

construction of trunk roads and in some cases render consultancy services to ensure contractors

meet specification.

The rampant deterioration of roads few months after their completion and handing over has

been a concern to many Ghanaians and questions have been asked about the quality of the road

works carried out. Similarly, complaints abound about delays in completing road works due to

variations and delayed payments contributing to cost overruns because of fluctuations and in

many cases interest on delayed payments.

Roads are integral part of the transport system as it links main cities, towns and villages. It

links agricultural production areas with local, regional and national markets and it carries in

excess of 97% of all passenger and freight traffic in Ghana and thus a main economic player.

The purpose of the audit was to assess and give assurance to Government that GHA ensures

roads awarded and constructed under their supervision meet the required standards and

guarantees Value for Money

ii |Performance Audit Report of the Auditor-General on selected Roads

We scoped three road projects constructed between 2012 and 2019, under “Client design

arrangement contract” method for the audit. The roads were Tetteh Quarshie –Madina,

Ayamfuri-New Obuase and the Bolgatanga Bawku-Polimakom) under implementation from

2014 to 2019 by the Ghana Highway Authority (GHA) to determine whether they met the

required standard specifications and guaranteed Value for Money.

Our audit disclosed that Feasibilities studies had been carried out but were not reviewed before

implementation to take note of traffic changes in time between the studies and implementation.

Budgetary estimates for the projects were based on preliminary/unrevised designs and

provisional sums and so did not give a true reflection on the final cost during implementation

through variations and additional costs.

We also noted that two contractors were sole sourced for the projects. We could not give our

opinion on the fairness of the selection of supervising consultants because there was no

evaluation report on how the selection was done.

I have made recommendations to GHA, in the area of project planning, budgeting and

implementation to bring about improvement in road construction to ensure the country gets

Value for Money for such projects

I also recommended to GHA to institutionalised prescribed maintenance schedules to prolong

road life in the country.

I trust that this report will meet the approval of Parliament.

Yours faithfully,

DANIEL YAW DOMELEVO AUDITOR-GENERAL THE RIGHT HON. SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA

iii |Performance Audit Report of the Auditor-General on selected Roads

Table of Contents

EXECUTIVE SUMMARY ...................................................................................................... vi

1.0 Introduction ..................................................................................................................... 1 1.1 Reasons for the Audit .................................................................................................. 1 1.2 Audit purpose and scope ............................................................................................. 3

1.2.1 Purpose ........................................................................................................................ 3

1.2.2 Scope ............................................................................................................................ 3

1.3 Audit Objective ........................................................................................................... 3

1.4 Methodology ............................................................................................................... 4

1.4.1 Sampling ...................................................................................................................... 4

1.5 Methods of data collection .......................................................................................... 6

1.5.1 Document review ......................................................................................................... 6

1.5.2 Interviews .................................................................................................................... 6

1.5.3 Field Inspection ........................................................................................................... 6

1.5.4 Material Laboratory Tests ............................................................................................ 9

2.0 Description of the audit area .............................................................................................. 11 2.1 Overview of the selected road projects ..................................................................... 14

2.1.1 Tetteh Quarshie to Madina Road Project ................................................................... 14

2.1.2 Ayamfuri to New Obuase Road Project .................................................................... 16

2.1.3 Bolgatanga-Bawku-Polimakom Road Project ........................................................... 17

2.2 Mandate of GHA ....................................................................................................... 19

2.2.1 Vision statement ........................................................................................................ 19

2.2.2 Mission statement ...................................................................................................... 19

2.3 Functions of GHA ..................................................................................................... 19 2.4 Sources of funding .................................................................................................... 20 2.5 Key players and stakeholders .................................................................................... 21

2.6 System description .................................................................................................... 22

iv |Performance Audit Report of the Auditor-General on selected Roads

3.0 FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ....................................... 24 3.1.0 Introduction ............................................................................................................... 24 3.2 Planning for road projects (studies, design and budgeting) ............................................... 24

3.2.1 Feasibility Studies ........................................................................................................... 25

3.2.2 Project Design ................................................................................................................. 27

3.2.3 Budgeting ........................................................................................................................ 29

3.3.0 Procurement of consultant/contractors ........................................................................... 33

3.3.1 Procurement of Sonitra Limited for the Construction of the Tetteh Quarshie -Madina

Road Project ............................................................................................................................. 33

3.3.2 Procurement of China Jiangxi Corporation for International Economic and Technical

Cooperation for the construction of the Ayamfuri-New Obuase Road Project ....................... 36

3.3.3 Procurement of Consultants and Contractors for the Bolgatanga-Bawku-Polimakom

Road 40

3.3.3.1 Procurement of Messrs Queiroz Galvao Construction Limited for the construction of

the Bolgatanga-Bawku-Polimakom Road Project ................................................................... 40

3.4.0 Implementation of the project (managing scope, cost, time and ensuring project

quality) 45

3.4.1 Implementation of The Tetteh Quarshie- Madina Road Project ............................... 46

3.4.1.1 Scope management (variations) ................................................................................. 46

3.4.1.2 Cost management (Payment for works) ................................................................... 52

3.4.1.3 Time management (Completing the works on time) ................................................. 57

3.4.1.4 Delivering the road project to the quality specified .................................................. 60

3.4.2 Implementation of the Ayamfuri to New Obuase Road Project ............................... 66

3.4.2.1 Scope management (variations) ................................................................................. 66

3.4.2.2 Cost management (Payments for works) .................................................................. 70

v |Performance Audit Report of the Auditor-General on selected Roads

3.4.2.3 Time management (Completing the works on time) ................................................ 73

3.4.2.4 Delivering the road project to the quality specified ................................................... 74

3.4.3 Implementation of the Bolgatanga-Bawku-Polimakom Road Project ...................... 82

3.4.3.1 Scope management (variations) ................................................................................ 82

3.4.3.2 Cost management (Payment for works ) .................................................................. 83

3.4.3.3 Time management (Completing the works on time) ................................................ 86

3.4.3.4 Delivering the road project to the quality specified .................................................. 88

3.5 COMPLETION AND DOCUMENTATION ........................................................... 95

3.5.1 Completion ................................................................................................................ 95

3.5.1 Documentation ........................................................................................................... 96

3.6 OVERALL CONCLUSION ..................................................................................... 97 Appendixes, Analysis Sheets & Some Supporting Document ................................................ 99

Appendix 1. List of Documents reviewed ............................................................................... 99 Appendix 2. List of interviewees ........................................................................................... 100 Appendix 3. Field inspection and methodology .................................................................... 102

Appendix 4. Laboratory test results of asphalt core samples ................................................. 104 Appendix 5 Key players and their roles ................................................................................. 108 Appendix 6. Details of system description ............................................................................ 110

Appendix 7. Details of Variation Orders on Tetteh Quarshie Madina Road Project ............ 111 Appendix 8. Table of road widths, core thickness as measured on site and tests on concrete

structures ................................................................................................................................ 114 Appendix 9. Payment Details ............................................................................................... 120

vi |Performance Audit Report of the Auditor-General on selected Roads

EXECUTIVE SUMMARY

1. Ghana has about 78,401 km of road network linking communities in the

country thus promoting commerce and cultural integration. The Government

has invested GH¢ 8.24 billion in construction of new and upgrading of old

roads between 2012 and 2018 mostly through loans.

2. The roads are constructed under the supervision of the Ghana Highway

Authority, mandate by law Act 540 of 1997, to design and supervise the

construction of trunk roads and in some cases render consultancy services only

to ensure contractors meet specification.

3. The rampant deterioration of roads few months after their completion

and handing over has been a concern to many Ghanaian and the questions has

been asked about the quality of the works carried out. Similarly, complaints

abound about delays in completing roads works due to variations, delayed

payments resulting in cost overruns caused by fluctuations and in many cases

interest on delayed payments

4. In line with Section 13(e) of the Audit Service Act 2000, Act 584 the

Auditor-General commissioned an audit of selected roads procured between

2012 and 2019 by the Ghana Highway Authority (GHA) to determine whether

they met the required standards and guaranteed Value for Money as an

assurance on the performance of GHA.

What we did.

We selected three roads, (Tetteh Quarshie –Madina, Ayamfuri-New

Obuase and the Bolgatanga Bawku-Polimakom) procured under client

design arrangement contract method. We reviewed documents related

to the selected road projects, interviewed personnel, contractors and

consultants on the projects. We also inspected and took physical

vii |Performance Audit Report of the Auditor-General on selected Roads

measurements of the works as well as extracting core samples of the

roads which were tested in the laboratory.

The objective was to assess whether GHA;

i. followed accepted procedure and good practice in planning for road

projects (Feasibility studies, design and budgeting),

ii. followed due process in engagement of consultants and contractors to

execute the selected road projects,

iii. put measures in place to deliver the selected road projects within scope,

cost, time and to quality standards, and

iv. ensured the road projects were completed and all relevant certificates

issued (Contract documentation and maintenance schemes).

What we found

Planning for road projects

5. Feasibilities studies had been carried out but were not reviewed before

implementation to take note of traffic changes in time between the studies and

implementation. GHA provided estimates for the three projects to serve as

budget for the Ministry of Roads and Highways in sourcing for funds for the

projects. Apart from the Ayamfuri-New Obuase project, the budgets for the

Tetteh-Quarshie and Bolgatanga-Bawku-Polimakom road projects were based

on preliminary/unrevised designs and provisional sums and did not give a

true reflection of the final cost during implementation through variations and

additional costs.

viii |Performance Audit Report of the Auditor-General on selected Roads

Procurement of consultants and contractors

6. GHA generally followed the procurement laws and guidelines in

obtaining the services of the contractors for the three projects. It was difficult to

validate the fairness and transparency of the procurement processes for the

supervision consultant for the Ayamfuri-New Obuase road project and Sonitra

Limited for the Tetteh Quarshie Madina road project due to the absence of

evaluation reports and approval letters on the procurement. GHA used Sole

sourcing and restricted tendering as a preferred method for Queiroz Galvao

Construction Limited and Delin Consult for the Bolgatanga-Bawku-Polimakom

Project.

Implementation of the road projects within scope, cost, time and to quality

standards

7. The Tetteh Quarshie–Madina road project was largely constructed to the

required contract specification however the implementation process was

bedevilled by problems of poor management of scope, schedule, cost and

payment which resulted in significant cost and time overruns. The project

delayed by over 10 years and the variations and claims led to a rise in the Cedi

and US Dollar components of the contract sums by 624% and 187% respectively

from GH¢ 23,558,960.95 and US$ 17,414,431.78 to GH¢ 170,477,493.66 and US$

49,974,242.82.

8. The Ayamfuri-New Obuase road project took 64 months instead of 24

months to complete due to variations brought about by unknown site

conditions which should have been determined during the feasibility and

design stage. There were cost overruns of GH¢ 22,573,895.05 and US$

10,543,792.05 due to the variations, compensation of project affected persons,

relocation of utilities and claims for delay in payments. 12 out of 20 asphalt

ix |Performance Audit Report of the Auditor-General on selected Roads

cores extracted and measured along the stretch of the road did not meet the

specified of 100mm.

9. The Bolgatanga-Bawku-Polimakom road project had stalled as a result of

non-payment of IPC’s on time by the Road Fund Secretariat. The project, which

was supposed to have been completed in June 2019, is 19.45% complete. The

delay in payment of IPCs as at June 2019 has led to interest charges of GH¢

38,189,353.65 in addition to the original contract sum of GH¢ 612,743,844.64.

Completion and documentation

10. The Tetteh Quarshie-Madina and Ayamfuri New-Obuase Projects are

completed and GHA has issued completion certificates. The taking over

certificate for the Ayamfuri New-Obuase Project was issued on 14 September

2018. GHA took over the Tetteh Quarshie-Madina Project in sections beginning

on 23 May 2009 up to 13 February 2019.

11. Filing and maintenance of documents for the projects was not complete

and was difficult to have a complete trail of the progress of the projects

The way forward

Recommendations

12. Our review of planning processes for roads works supervised by GHA

shows that some efforts had been made to ensure that roads are properly

planned, designed and procured. To improve upon the planning processes, we

recommended that GHA should;

i. capture all intended roads projects in a strategic plan for planning

purposes and accountability.

ii. review design drawings of any project it intends to implement especially

where there has been a time laps between feasibility studies and

x |Performance Audit Report of the Auditor-General on selected Roads

implementation with its complementing bill of quantities prior to

tendering, and

iii. Estimates should be prepared from detailed drawings and not through

budgetary ceilings as practised to reduce the tendency of eliminating

items only to reintroduce them as variations

iv. Prepare adequately through planning to limit the use of sole sourcing,

v. Document all the processes leading to the award of contract including

evaluation reports, and

13. Analysis of data made available to us show that challenges exist during

implementation of road projects in the country in the areas of scope

management, payments for work done and ensuring projects are completed

within schedule to get the full benefit for users that has to be addressed. To

ensure proper implementation of current and future road projects, we

recommended that GHA should;

i. have complete drawings and designs that inform cost estimates and

clearly define the scope of works of all projects,

ii. desist from the practice of removing needed work items in order to

meet budget ceilings only to reintroduce them during implementation,

iii. Fulfil all relevant conditions of relocation and compensation precedent

to project commencement, and introduce cut off time to accept

payment of compensation to prevent residents taking advantage to

relocate on site earmark for road works.

iv. Treat additional works unrelated to ongoing projects not as variations

and should be subjected to separate procurement processes

v. Ensure that it seeks and obtains approval for all variations,

xi |Performance Audit Report of the Auditor-General on selected Roads

vi. Identify at an early stage the source of funding and possibly ring fence

such funds to meet all projected costs during implementation, and

vii. immediately institute and implement a policy on processing and

payment of IPCs within 56 days and sanction officers who delay each

IPC with cost of claims due to the delayed IPC.

1 |Performance Audit Report of the Auditor-General on selected Roads

CHAPTER ONE

1.0 Introduction

1.1 Reasons for the Audit

14. Roads play an essential part of economic development and can

contribute significantly to the socio-economic and cultural development of any

country. A good road network helps to link communities together and

enhances commerce, thereby improving the economic wellbeing of the citizens.

Roads have also enhanced cultural exchanges between communities and have

contributed to improved access to health care facilities in a timely manner.

15. Roads are integral part of the transport system as it links main cities,

towns and villages. It links agricultural production areas with local, regional

and national markets and it carries in excess of 97% of all passenger and freight

traffic in Ghana.

16. The Ministry of Roads and Highways estimates that Ghana has about

78,401 km of road network as of December 2017. Of this, 14,583 km are trunk

roads, 48,357 km are feeder roads and 15,462 km are urban roads. These roads

play a significant role in Ghana’s economy as road transport is the most widely

available form of transport (96%)1 in the country. At a press briefing, the

Minister of Roads and Highways, revealed that about 61 per cent of roads in

the country are classified as poor2.

17. Between 31 December 2012 and 1 January 2018, a total amount of about

GH¢ 8.24 billion3 was spent on construction of new and upgrading of old roads.

1https://www.gipcghana.com/invest-in-ghana/why-ghana/infrastructure/transportation-infrastructure.html (accessed on 18 Jul. 19) 2 url: https://www.myjoyonline.com/news/2017/December-31st/61-of-ghanas-classified-as-poor.php 3 Total disbursement by MRH from 2013 to 2017

https://www.gipcghana.com/invest-in-ghana/why-ghana/infrastructure/transportation-infrastructure.html

https://www.gipcghana.com/invest-in-ghana/why-ghana/infrastructure/transportation-infrastructure.html

https://www.myjoyonline.com/news/2017/December-31st/61-of-ghanas-classified-as-poor.php

https://www.myjoyonline.com/news/2017/December-31st/61-of-ghanas-classified-as-poor.php


Despite the investments in the road sector, drivers and passengers alike are

worried about the constant deterioration of roads, months after they have been

completed and handed over by contractors. The frequent repairs and

maintenance of the same roads repeatedly with attendant cost implications,

mean that new ones are never considered and undermines government’s quest

to expand the road network.

18. Ghana as a country is unable to finance road construction solely from

internally generated funds and has to resort to borrowing with interest

payments from international financial institutions such as World Bank, African

Development Bank, European Union, Japan bank for International Co-

operation etc. It becomes a double agony when a road constructed from a loan

starts deteriorating when the loan is yet to be settled. The public has expressed

similar sentiments and concerns about extended construction time of roads in

Ghana. In some instances, a road project scheduled to be completed within 24

calendar months sometimes take 60 months or more to complete.

19. With ever increasing budgetary demands from various sectors such as

Health Care, Agriculture, Education etc. there is the need to ensure that moneys

allocated for road construction are properly used. Year by year budgetary

allocation for roads works continue to increase as the road network is estimated

to grow. For instance, between 2014 and 2017 the Ministry of Roads and

Highways planned budget increased from GH¢ 2.1 billion to GH¢ 6.7 billion.

Proper planning and budgeting are therefore required to ensure value for

money to reduce the wastage, inconvenience to motorists and save the

country’s money. It must therefore be a priority that these roads meet the

prescribed quality specifications, cost and time, to serve their built-in project

life.

20. In view of this, the Auditor-General under his mandate in the Audit

Service Act (Act 584), 2000, Section 13(e), commissioned this Performance Audit


to assess and give assurance to Parliament and the general public that roads

constructed and supervised by the Ghana Highway Authority (GHA) meet the

required standards and ensure value for money.

1.2 Audit purpose and scope

1.2.1 Purpose

21. The purpose of the audit was to assess and give assurance to government

that GHA ensures roads awarded and constructed under their supervision

meet the required standards and guarantees Value for Money.

1.2.2 Scope

22. We carried out the audit on three selected Ghana Highway Authority

supervised roads, under implementation from 2012 to 2019. We carried out the

audit from March to June 2019 and focused on:

v. Planning (Studies, design and budgeting)

vi. Procurement of Contractors and Consultants (Selection and award of

contract)

vii. Execution of the project (managing scope, cost, schedules and ensure

project meets quality specifications)

viii. Closure of the projects (Contract documentation and maintenance

schemes)

1.3 Audit Objective

23. The objectives of the audit were to assess and determine within the focus

of the audit, whether GHA:


i. followed accepted procedure and good practice in planning for road

projects,

ii. followed due process in engagement of consultants and contractors to

execute the selected road projects,

iii. put measures in place to deliver the selected road projects within scope,

cost, time and to quality standards, and

iv. ensured the road projects were completed and all relevant certificates

issued (Contract documentation and maintenance schemes).

1.4 Methodology

24. We carried out the audit in accordance with the general requirement of

INTOSAI auditing standards for performance audit (ISSAI 3000). These

standards require that the audit is planned and performed in a manner as to

obtain reasonable assurance that the audit objectives are met. We engaged a

technical consultant, with over 20 years in civil and road construction for the

period of the audit to provide technical support to the audit team. In

accordance with Section 29(1) of the Audit Service Act 2000, Act 584, GHA was

given 30 days to respond to our observation made in the Management letter per

our letter dated October 18, 2019 reference PSAD/PAU/PROJ/09/05.

1.4.1 Sampling

25. The audit team sampled eight road projects from the progress reports on

ongoing GHA projects contracted under Works Designed by the Employer

arrangement. Out of the sample, three projects were selected for the focus of the

audit. The projects were selected based on:

i. Status of completion


o We selected roads which should have been completed by 31

December 2018.

ii. Type of pavement

o Asphaltic roads were considered due to the high cost of

construction and possibility of using the asphalt coring machine to

take core samples for measurement and testing.

iii. Cost

o Projects which had exceeded their initial contract sum were

chosen.

iv. Location

o The road projects were selected from the Greater Accra, Central

and Upper East Regions for the first phase of these audits.

v. Source of funds

o Projects funded through both GoG and foreign components.

26. On basis of the criteria above, we selected the road projects shown in Table 1.

Table 1: Road Projects Selected for Audit

No. Name of

Project

Region Year

commenced

Expected year

of completion

Initial Contract Sum Funding

Source

1 Tetteh

Quarshie-

Madina

Greater

Accra

2006 2009 GH¢ 23,558,960.95 plus US$

17,414,431.78

Consolidated

Fund

2 Ayamfuri -

New Obuase

Central 2013 2015 GH¢ 13,641,596.55 plus USD

20,694,136.82

World Bank

3 Bolgatanga-

Bawku-

Polimakom

road project

Upper

East

2016 2019 GH¢ 612,743,844.64 Road Fund

Source: GHA progress report on projects as at 31 December 2018


1.5 Methods of data collection

27. The team reviewed documents, interviewed key players in the

construction of the selected roads and inspected the selected roads to take

measurement and extract asphalt core samples for testing in the Laboratory. We

applied these procedures to enable us triangulate our evidence that we

considered necessary and appropriate to provide such assurance that our audit

objectives are met.

1.5.1 Document review

28. We reviewed documents on the planning and implementation of the

three projects provided by GHA, Contractors, Consultants, Ministry of Roads

and Highways. The documents were reviewed to give the audit team in-depth

information on the selected projects and collection of primary evidence for the

audit. Full details of documents reviewed is attached as Appendix 1.

1.5.2 Interviews

29. We interviewed key officials of GHA, Contractors, Consultants, Ministry

of Roads and Highways who were directly involved in the planning and

implementation of the selected projects. The interviews enabled us corroborate

or otherwise information from documents and site inspections. The interviews

were conducted between 26 March and 31 July 2019. The full list of interviewees

is attached as Appendix 2.

1.5.3 Field Inspection

30. The team inspected the three roads to obtain a first-hand information on

the status of the road project, the extent of works done, took measurements of

road width, Schmidt hammer measurements of concrete strength, as well as

asphalt cores for laboratory testing. The selection of locations to core was based

on standards used by the American Society of Testing Materials (ASTM) for


removal of compacted bituminous mixture (asphalt) for laboratory testing. Our

sampling was done according to ASTM D3665 whilst the coring of the road was

done in conformity to ASTM D5361.

31. We took ten asphalt core samples from the Tetteh Quashie - Madina Road

and 20 samples from the Ayamfuri – New Obuasi Road. The team also took

random Schmidt hammer readings for concrete drains, culverts and bridges

where they were accessible. Pictures of the field inspection are shown in

Pictures 1 to 6.

Picture 1: Extracted Asphalt Core

Sample from Tetteh Quarshie-

Madina road

Picture 2: Measuring Extracted Asphalt Core

Sample from Ayamfuri-New Obuase road


Source: Audit staff coring, measuring of road, April - June 2019

Picture 5: Coring of asphaltic concrete

on Ayamfuri-New Obuase road

Picture 6: Coring of asphaltic concrete on

Tetteh Quarshie-Madina road

Picture 4: Taking Schmidt Hammer

measurements

Picture 3: Taking road measurements

on Ayamfuri New Obuase road


32. Our inspection enabled us to measure the width of the road at the point

where the asphalt cores were taken to determine the width of carriageway and

shoulder. We measured the total length of the road using the odometer of the

trekking vehicle. These measurements were taken to enable the team compare

with the specification in the drawings and contract documents so we could

draw our conclusions. The details of the field inspection methodology are given

in Appendix 3.

1.5.4 Material Laboratory Tests

33. These tests were conducted at the GHA Central Materials Laboratory and

the results were compared to the design specifications in order to draw

conclusions whether the materials used met specifications. Testing of the

materials in GHA Laboratory was to enable the team as part of the audit,

validate the capacity and existence of such a facility to GHA for their quality

assurance purposes for road construction in Ghana. To limit the risk of possible

tampering of test results in the laboratory, the team was present at all steps of

the processes supported by our technical adviser. Sample pictures of the

laboratory testing are shown in Pictures 7 and 8 whiles the test results are

presented in Appendix 4. We tested the asphalt sample for;

i. Grading (i.e. aggregate size distribution)

ii. Bitumen content (i.e. quantity of Bitumen in the asphaltic concrete).

iii. Density (i.e. the degree of compactness of the asphaltic concrete) and

iv. Air voids (i.e. air spaces in the asphaltic concrete)

v. Thickness


Picture 7: Size reduction of the asphalt

core samples

Picture 8: Removal of air voids from

loosened asphalt sample

Source: Laboratory testing of asphalt, April - June 2019


CHAPTER TWO

2.0 Description of the audit area

34. Roads have become an essential part of human endeavor and since the

creation of automobile to replace donkeys and camels as means of transports, the

need for well-networked and good roads to link communities have become a

necessity. National targets for growth and poverty reduction also rely on an

effective road transportation system. The inability to access services because roads

are not motorable is an important element of social exclusion which defines

poverty.

35. Providing accessibility to facilitate mobility and movement of goods and

services throughout the country underpins national growth and reduces poverty,

a key goal in the SDG for which Ghana has committed. In Ghana, 13.7% of the

national GDP4 is spent on infrastructure development, of which roads form a

significant portion. Yet the maintenance of the same roads repeatedly within a

short period after construction has become a drain on the country’s budget and a

concern to many.

36. Roads in Ghana are classified as Feeder Roads, Urban Roads or Highways

depending on the location and use which in turn determines the

design. Regardless of the category, these roads are needed to contribute to

economic development. Good roads enable faster movement of people to the

markets, hospitals, schools etc. Good roads have also been partly blamed for

increase in road accidents. In recent times, statistics from the NRSC reveal a high

number of deaths on our roads due to vehicular accidents. This nevertheless does

not mean that Government should relent in improving upon the quality and

length of roads in the country.

4 Provisional 2017 Annual Gross Domestic Product, Ghana Statistical Service (April 2018 edition)


37. To ensure efficient administration of trunk roads in the country, the Ghana

Highway Authority Decree 1974, (NRCD 298) was passed. This was later re-

enacted by Parliament as Act 540 of 1997 to bring it in conformity with the

constitution. According to Act 540, GHA is to design and supervise the

construction of trunk roads and in some cases render consultancy services only to

ensure contractors meet specification. The trunk road network is shown in Picture

9.


Picture 9: Trunk road network of Ghana

Source: Ghana Highway Authority


2.1 Overview of the selected road projects

2.1.1 Tetteh Quarshie to Madina Road Project

38. The Government of Ghana, under the Road Sector Development

Programme (RSDP), with financial support from development partners,

embarked on a rehabilitation programme of some major roads including the

Tetteh Quarshie to Mamfe Dualization Project of which the Tetteh Quarshie-

Madina road forms a section. The set objective of the Project was to contribute to

Government’s goal of poverty reduction and economic development by reducing

travel time, congestion and vehicle operating costs due to usage of the road for

both passenger and freight transport. Between 1998 and 1999, economic feasibility

studies and detailed engineering designs for the reconstruction of the entire trunk

road from Tetteh Quashie to Mamfe were prepared. The 39.6 km long trunk road

was then divided and packaged into four components for implementation under

separate contracts, and to facilitate parallel financing. The components were;

The Tetteh Quarshie Grade Separated Interchange,

The Tetteh Quarshie to Madina section (4.6 km),

The Madina to Pantang section (4.9 km), and

The Pantang to Mamfe section (30.1km)

39. The 4.6 km Tetteh Quarshie - Madina road project comprised asphalt

surfaced three-lane dual carriageways with sidewalks, bicycle lanes, drainage and

ancillary works. There was also to be two interchanges at University of Ghana,

Legon and Atomic Junction. The project was awarded in October 2006;

commenced in November 2006 and was expected to be completed in May 2009.

The estimated cost of the project was USD$ 17, 414, 431.78 and GH¢ 23,558,960.95


(the total equivalent of USD$ 43, 000, 0005). Pictures of the project are shown in

Pictures 10 to 13.

Picture 10: Section of Tetteh Quarshie-

Madina at Shiashi

Picture 11: Section of Tetteh Quarshie-

Madina towards University of Ghana

Picture 12: Tetteh Quarshie-Madina road

showing the Legon Underpass

Picture 13: Section of the Atomic Junction

Flyover

Source: Audit team field inspections of road projects, April - June 2019

5 Amount at the contract exchange rate of US$ 1: GHS 0.9207


2.1.2 Ayamfuri to New Obuase Road Project

40. The Ayamfuri – New Obuase road project is part of the Ayamfuri to

Asawinso Junction of Inter Regional Road 6 and Inter Regional Road 8. The project

comprised the rehabilitation of 26.0km of the road to asphalt to serve as an

effective north south corridor linking the north to the Takoradi Port in the south.

Apart from improvement in north south commerce the project was envisaged to

bring relative comfort and convenience for local roadside residents and road users

arising from dust reduction in dry weather and access problems in wet weather.

The feasibility studies commenced in 2007 and designs were completed in 2009.

The estimated cost of the project was about US$ 29 million, it commenced in

December 2012 and was expected to be completed in December 2014. Pictures 14

to 17 show sections of the road.

Picture 14: Section of the Ayamfuri-New

Obuase road


Obuase road



Obuase road


Obuase road


2.1.3 Bolgatanga-Bawku-Polimakom Road Project

41. The Bolgatanga-Bawku-Polimakom road is a 116.1 km long road including

three bridges over the Red, Black and White Volta at Zualugu, Tilli and Zebilla. It

starts from Bolgatanga (Central Corridor) to link up with the Eastern Corridor

Road at Missiga. The project is expected to improve the efficient movement of

people, goods and services between Ghana, Burkina Faso and Togo to promote

the socio-economic development of the people in the sub-region. The project was

awarded in September 2016; commenced in December 2016 and was expected to

be completed in June 2019. The estimated cost of the project was US$

160,316,015.97 (GH¢ 612,743,844.64). Pictures 18 to 21 show sections of the road.


Picture 18: Section of the Bolagatanga-

Bawku-Polimakom road

Picture 19:Section of the Bolagatanga-








2.2 Mandate of GHA

42. Ghana Highway Authority is mandated by Ghana Highway Authority Act,

1997 (Act 540) to ensure effective and efficient management of trunk roads. The

Act makes GHA the agency responsible for the administration, control,

development and maintenance of trunk roads and related facilities, subject to the

policies of the Ministry of Roads and Highways.

2.2.1 Vision statement

43. The vision of the Ghana Highway Authority is being a world-class provider

of safe road infrastructure.

2.2.2 Mission statement

44. GHA provides Road Infrastructure Engineering and Management Services:

project appraisal, feasibility studies and detailed design; contract preparation and

administration; maintenance and operation; civil engineering materials

prospecting and testing for roads, bridges and road safety facilities at best value –

least cost to support the socio-economic development of Ghana and beyond.

2.3 Functions of GHA

45. The functions of GHA as spelt out in the GHA Act relevant to the focus of

the audit are:

i. Plan, develop, maintain, protect and administer trunk roads and related

road works;

ii. Classify and lay down design standards on the different classes of trunk

roads;

iii. Undertake research or collaborate with any research Organization with

a view to facilitating the Authority’s planning, development and

maintenance activities;


iv. Maintain and preserve such records relating to its functions as it

considers expedient;

v. Maintain and update a list of designated trunk roads;

vi. Carry out, on a permanent basis, such necessary engineering traffic and

economic studies as it may consider necessary for the maintenance and

improvement of the trunk road network;

vii. Carry out either by its employees or through contractors with qualified

consultants, location and design studies (including right-of-way and

borrow pit requirements) necessary for programmed trunk road

improvement or rehabilitation projects and prepare corresponding

construction plans, specifications, cost estimates and other documents

required for proper tendering of the programmed works;

viii. Subject to existing enactments, tender, let and administer contracts for

trunk road improvement and rehabilitation project and for trunk road

maintenance activities for which contracting is considered by the

Authority to be cost effective or otherwise advantageous;

ix. Keep adequate records and operate a management information system

which provides the managers with timely and accurate information on

commitments and expenditure for works and services for which the

managers are responsible;

2.4 Sources of funding

46. Funding for road works are through the Ghana Road Fund, budgetary

allocations from Government of Ghana (GoG) and loans disbursed through the

Ministry of Finance (MoF). GHA is a road infrastructure and support agency

responsible for the maintenance and development of trunk roads under the

Ministry of Roads and Highways. Their budget is consolidated into the budget of

the Ministry of Roads and Highways (MRH). Table 2 indicates the budget,

approvals and releases by MRH to the road sector from 2013 to 2017.


Table 2: Budgeted and releases of funds for Road works from 2013-2017 (MR&H)

Year Total Planned budget, GH Approved, GH Disbursed, GH

2013 No data available 165,617,270.00 531,636,660.00

2014 2,087,381,700.00 747,030,416.00 1,223,681,240.00

2015 3,698,297,630.00 931,657,411.00 1,664,504,323.00

2016 5,279,909,020.00 624,624,197.00 3,084,015,085.92

2017 6,750,928,630.00 1,581,222,972.00 1,731,911,704.00

Total 17,816,516,980.00*6 4,050,152,266.00 8,235,749,012.92

Source: Extracted from Ministry of Roads and Highways Medium Term

Expenditure Framework (2016 – 2018)

47. A review of Table 2 show a trend observed where disbursements are higher

than approved budget and our audit reveal were due to arrears from previous

years which were not part of the budget submitted.

2.5 Key players and stakeholders

48. The Key Players for the audit are the Units and Departments that play a

direct role in the planning and implementation of the project. The stakeholders to

the audit are those institutions that support the Key Players in the execution of

their roles. The list of Key Players and stakeholders of the audit are shown in Table

3 and detailed in Appendix 5.

Likely higher because of absence of figures


Table 3: Key Players and Stakeholders

Key Players Stakeholders

Ministry of Roads and Highways Ministry of Finance

World Bank Ghana Road Fund

Ghana Highway Authority (All key

departments)

Regional Coordinating Council

Engineer’s Representative /Consultant Lands Commission

Contractors General public/communities

Survey department (Evaluation Unit) Electricity, Water and other Service

providers

Source: Audit team review of project documents and correspondence

2.6 System description

49. The system description for the planning and implementation of road

projects is shown in Figure 1 in Appendix 6.


Figure 1: System Description

Source: GAS Performance Audit Infrastructure Guide


CHAPTER THREE

3.0 FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

3.1.0 Introduction

50. The Ghana Highway Authority (GHA) is responsible for the administration,

control, development and maintenance of trunk roads and related facilities in the

country. The audit of selected road projects examined the various processes of the

project life cycle to determine whether if in general, road works administered by

GHA guaranteed value for money. To enable the team draw conclusion on this

audit objective, we sought answers to our audit questions by analysing data

gathered using our audit methodology detailed in paragraphs 11 to 20 and

Appendices 3 and 4 of this report. Our findings, conclusions and

recommendations on the Tetteh Quarshie to Madina, Ayamfuri to New Obuase

and the Bolgatanga-Bawku-Polimakom Road Projects are presented in this

chapter under the following headings:

a. Planning for the road projects (Studies, design and budgeting)

b. Procurement of contractor / consultant

c. Project implementation

d. Project closure and documentation

3.2 Planning for road projects (studies, design and budgeting)

51. Ensuring that project objectives are met depend greatly on how well

planning was considered at the inception of the project. Planned road projects

define the project objective by stating in broad outline what the project has to

achieve and how it is to be operationalised including scope, procurement

methods, time and financing options. When planning is well undertaken, it allows


a more detailed look at project resource requirements and will include feasibility

studies, tender plans and construction plans. Feasibility studies in particular

provide information to determine appropriate design solutions, timelines and

resource needs for funding.

52. We reviewed the Roads project planning process carried out by GHA on

three selected roads by focusing on how feasibility studies were carried out to

support project designs and estimation.

3.2.1 Feasibility Studies

53. Section 3 (1) (g) of Ghana Highway Authority Act, 1997, Act 540 mandates

Ghana Highway Authority to carry out, on a permanent basis, such necessary

engineering traffic and economic studies as it may consider necessary for the

maintenance and improvement of the trunk road network. Standard industry

practice requires GHA to carry out a feasibility study to assess the financial and

technical viability of any project and propose preliminary designs prior to the

implementation of such projects. The feasibility study and design provide

information along the road corridor necessary for detailed design and costing of

the project.

54. The studies also highlight current and projected traffic, surface and

subsurface soil conditions, the extent of relocation of utilities and compensation

to Project Affected Persons (PAPs) along the proposed route. This provides

necessary baseline information for decision making as to whether to proceed to

implement a project or not, the options available and a preliminary estimate of the

cost of the project. Feasibility studies, documented in Feasibility reports are also a

pre-requisite to assess Donor funds for road projects and hence GHA is obliged to

produce feasibility reports for such projects.


55. We noted through review of project documents and correspondence, and

interviews with GHA management staff that the Authority adopted the FIDIC Red

Book (Works Designed by the Employer) concept for the implementation of the

three projects. Under this concept, the Employer (Ministry of Roads and

Highways) bares the responsibility for feasibility and design of the road project

whiles the contractor is responsible for implementing the designs of the Employer.

56. For the three projects, GHA indicated that it contracted private engineering

consultancy firms to carry out the feasibility studies. We noted that the Ayamfuri

- New Obuase Project feasibility study was done by M/S Carl Bro Intelligent

Solutions and M/S Axsys Engineering Limited in 2007 as part of the Awaso -

Ayamfuri - Bogoso IR8/IR6 and Gambia No. 2 - Kyeremaso IR8 Project. The World

Bank funded the feasibility and design studies for the Ayamfuri - New Obuase

Project. GHA provided the feasibility and design report for the project which

contained information on;

traffic analysis,

drainage structures,

topography,

soil and material investigation,

construction materials survey,

hydrological and hydraulic investigations and design,

geometric design,

pavement design and

structural design.

57. The report presented a draft tender dossier, cost estimate, implementation

schedule and an environmental and social impact assessment. The outcome of the

feasibility study indicated that the project was economically viable with a rate of

return of 21.5% above its test discount rate of 15%.


58. M/S Roughton and M/S Twum Boafo and Partners in 1998 as part of the

Tetteh Quarshie to Mamfe Dualization Project carried out feasibility study for the

Tetteh Quarshie to Madina Project, whilst M/S Delin Consult carried out the

study for the Bolgatanga-Bawku-Polimakom Project. However, feasibility reports

on these two projects were not available to us to confirm that they were carried

out.

3.2.2 Project Design

59. Section 3 (1) (i) of Ghana Highway Authority Act, 1997, Act 540 mandates

Ghana Highway Authority to carry out either by its employees or through

contractors with qualified consultants, location and design studies (including

right-of-way and borrow pit requirements) necessary for programmed trunk road

improvement or rehabilitation projects and prepare corresponding construction

plans, specifications, cost estimates and other documents required for proper

tendering of the programmed works.

60. We noted that GHA engaged private engineering consultancy firms to

design the road projects for the Tetteh Quarshie- Madina, Ayamfuri-New Obuase

and Bolgatanga-Bawku-Polimakom. These firms were;

M/S Roughton and M/S Twum Boafo and Partners

M/S Carl Bro Intelligent Solutions and M/S Axsys Engineering Limited,

and

M/S Delin Consult

61. We reviewed project files to determine if complete set of design drawings

were available before tender and construction drawings were issued to

contractors to enable the smooth progress of the projects. For the Tetteh Quarshie-

Mamfe road project, we noted that a complete set of designs and drawings

(general arrangement layouts, typical cross sections, geometric and layout


drawings, drainage layouts, traffic management, structural designs) were

produced as a component of the Tetteh Quarshie-Mamfe road project in 1998.

However, the project was put to tender in 2006 based on the 1998 designs and

drawings without review and updates. Since there was no review done, designs

continued to be carried out during construction which were captured as

variations. According to officials of the Survey and Design Department of GHA,

key components of the design such as interchanges had to be done to suit changed

conditions along the road when the project commenced which should have been

captured prior to tender if there was a review process.

62. For the Ayamfuri-New Obuasi project, there was a preliminary design in

2007 contained in the feasibility study report carried out by M/S Carl Bro

Intelligent Solutions and M/S Axsys Engineering Limited .We noted through

review of the contract document that in 2009, a consortium of consultants

(Grontmij/Carl Bro in association Comptran) carried out detailed designs and

drawings which was used to tender for the project in 2010. The design review

report of the Ayamfuri-New Obuase project indicated that the rate of increase for

traffic projections on that stretch were high, necessitating another review in 2013.

The review led to a modification of the pavement structure (shown in Table 4).

Slope stabilization designs were added in 2014 to cater for extremely soft and

unstable cut slope faces.

Table 4 : Design reviews on the pavement structures of Ayamfuri to New Obuase Road

Project

Initial pavement

design thickness

Revisions Comments

Wearing course:50mm

Binder course:80mm

Base:200mm

Sub-base:150mm

Wearing course:40mm

Binder course:60mm

Base:300mm

Sub-base:150mm

GHA indicated that the initial

design for the Base course would

not have been adequate considering

the expected traffic on the road

Source: Contract Documents and design review documents.


63. For the Bolgatanga-Bawku-Polimakom Road Project, we noted that Delin

Consult submitted revised design drawings based on their earlier feasibility

study, for the construction of the Bolgatanga-Bawku-Polimakom project to GHA

on 4th April 2017. The drawings contained general layout (typical cross section,

plan and longitudinal profile, bus bay details, etc.) and miscellaneous drawings

(drainage drawings, guard rail details, curve details, etc) for the road works only.

The revised drawings did not have any of the design drawings for the three

bridges over the River Kulaa, Red Volta and White Volta. Officials of GHA

indicated that the bridges were omitted from the design drawings because the

Contractor was expected to design and construct those during implementation as

part of his terms of reference.

3.2.3 Budgeting

64. Funding is key in any construction project to guarantee availability and

sustained cashflow to contractors for a successful implementation. The duty of

sourcing for funds for road projects rests with the Ministry of Roads and

Highways (Employer) and it is critical that prior to award of contract for any road

project, the Ministry identify a reliable source of funding. We expect GHA to

provide reasonable estimates based on drawings for budgeting purposes to enable

the Ministry secure adequate funding to meet all planned payment schedules

during implementation of projects.

65. For the three projects, GHA prepared initial estimates based on the design

drawings. Table 5 shows the funding source, initial estimates, contract sums and

the variances for the three projects.


Table 5 Funding source and contract sums for the three projects

Project Source of funding

Initial Estimate

Contract Sum Variance (%)

Tetteh Quarshie – Madina

GoG $39,808,210.18 $43,000,000.01 8.02

Ayamfuri – New Obuase

World Bank

$29,000,000.00 $ 29,983,613.53 3.39

Bolgatanga-Bawku-Polimakom

Road Fund

$137,731,076.80 $160,316,015.97 16.40

Source: Audit team review of Project Documents

66. From Table 5 we noted that the variance between the initial estimates and

the contract sums for Tetteh Quarshie- Madina and Ayamfuri- New Obuasi were

under 10% whiles that of Bolgatanga- Bawku- Polimakom project was above 10%.

67. We noted that the Ministry of Roads and Highways gave GHA budget

ceilings and so the Authority was compelled to fit its design estimates within the

provided budget. The fixed ceiling nature of budget provision meant that GHA

had to scale down on scope of road designs to meet the Ministry’s budget by

taking out some items from the bill of quantities. The scaled down designs were

later reintroduced as variation orders during construction.

68. We also noted from review of budgets and contract documents for the

projects that GHA through the Ministry identified the sources of funding for the

three projects. The World Bank funded Ayamfuri- New Obuasi project with a

dedicated account managed by the Ministry of Roads and Highways from which

all expenses were made during implementation of the project. The World Bank

account had an imprest of US$5.50 million for all World Bank funded projects

which is drawn down and replenished when the funds run out. For the Ayamfuri

Project, the World Bank provided US$58.5 million for implementation based on

the design estimate. The funds were secured and solely dedicated to that project.


69. We also noted that for Tetteh Quarshie-Madina and Bolgatanga-Bawku–

Polimakom, the source of funding was identified as GoG and Road Fund but

without a dedicated account to the project. Funds were disbursed as and when

the Ministry of Finance was able to allocate money to pay for works under the two

projects.

70. We also noted that the availability of a budget line for a road project as we

observed, did not guarantee payments, as disbursement of funds to pay for works

done depended on the availability of funds from either Road Fund or Central

Government. GoG road projects funds are not tied down to specific projects.

71. From our review of the budgetary allocations and releases to the Ministry

of Roads and Highways, we noted that there were yearly allocations to the project

by the Ministry. These projects were mainly those under GoG and Road fund and

as shown in Table 2 the allocations made were indications of intention to pay for

the works under the projects and not releases. As we found from our reviews, the

releases made for the projects were not commensurate with the quantum of works

carried out which needed to be paid. Consequently, the resources allocation and

releases for the GoG projects did not rely on the estimates made from the designs

to plan the payment as the releases were not sufficient to meet cost of payment for

work done.

Conclusion

72. There is no indication that the three selected roads were planned and

captured under GHA strategic plan for implementation. However, there has been

attempts at upgrading those roads which were due to the deteriorated nature of

the roads dating back 1998 as in the case of Tetteh Quarshie-Madina road and 2007

as in the Ayamfuri-New Obuase road. Feasibilities studies had been carried out

but were not reviewed before implementation to take note of the laps in time

between the studies and implementation.


73. GHA provided estimates for the three projects to serve as budget for the

Ministry of Roads and Highways in sourcing for funds for the projects. Unlike the

Ayamfuri-New Obuase road project, the estimates provided for the Tetteh

Quarshie-Madina and Bolgatanga-Bawku-Polimakom road projects were

however based on preliminary/unrevised designs and provisional sums which

affected the final cost during implementation.

74. Estimates as submitted are usually more of budgetary ceiling rather than

price estimates derived from the drawings thereby resulting in variations due to

the reintroduction of items dropped to meet the budgetary allocation. It is not

helpful for accountability and assessment for Value for Money and opens the

process for discretion and abuse.

75. Where the estimates for projects are not adequately determined, and are

based on budgetary ceilings, the extent and scope of work are arbitrarily varied

leading to cost overruns. As we have elaborated under 3.4 (Project

implementation), variations that were not budgeted for affected the completion

time of the project and increased the project budget beyond 50% in some instances.

Recommendation

76. Our review of planning processes for roads works supervised by GHA

shows that some efforts had been made to ensure that roads are properly designed

and budgeted for to ensure smooth implementation. However, the planning

process including studies, designs, and budgeting can be improved.

77. To improve upon the planning process, we recommend that GHA should;

vi. capture all intended roads projects in a strategic plan for planning purposes

and accountability.

vii. review design drawings of any project it intends to implement especially

where there has been a time laps between feasibility studies and


implementation with its complementing bill of quantities prior to

tendering, and

viii. Estimates should be prepared from detailed drawings and not through

budgetary ceilings as practised to reduce the tendency of eliminating items

only to reintroduce them as variations.

3.3.0 Procurement of consultant/contractors

78. The Public Procurement Act, 2003, Act 663, (Part IV and V) provides

guidelines and directions for procuring the services of contractors and

consultants. Schedule 3 of the Act provides thresholds that procuring entities to

comply with when engaging in procurement activities. The Act provides uniform

procedures for the procurement of goods, works and services to secure a judicious,

economic and efficient use of state resources and to ensure that public

procurement is fair, transparent and non-discriminatory.

3.3.1 Procurement of Sonitra Limited for the Construction of the Tetteh

Quarshie -Madina Road Project

79. Section 47, 51, 53, 54, 55 and 59 of the Public Procurement Act, 2003 (Act

663) governs effective international competitive tendering and award of contract

where prequalification is a requirement.

80. GHA published a request for pre-qualification for the Tetteh Quarshie-

Madina Road Project in the Daily Graphic of 22 April 2006, inviting local and

international construction firms to apply for pre-qualification. In line with the PPA

requirements, the prequalification advertisement covered the scope of works;

qualification requirements; price for the prequalification documents; and the

place, time and deadline for submission as 4 May 2006. The criteria for qualifying

contractors contained in the advertisement and the pre-qualification documents

were;


Experience and satisfactory past performance on contracts of similar nature

and complexity;

Knowledge of working condition in developing countries

Capacity of contractors with respect to personnel, plant and equipment; and

Financial capacity.

81. From correspondence, we noted that nine (9) construction firms responded

to the advert, bought and submitted their prequalification documents. A three-

member panel carried out the pre-qualification exercise and submitted its report

on 17 May 2006.

82. Four out of the nine firms were shortlisted and invited per letters dated 9

June 2006, to submit tenders by 14 July 2006. Due to various requests for

clarification by the tenderers, GHA organized a pre-bid meeting on 30 June 2006

to resolve all queries, which resulted in a decision to extend the tender submission

date from 14 July 2006 to 28 July 2006.

83. We reviewed project correspondences and found that an Evaluation Panel

of three Principal Engineers, constituted on 31 July 2006, evaluated the tenders

and submitted its Evaluation Report which recommended Sonitra Ltd as the

lowest evaluated tenderer. The Evaluation Report was however not made

available to us for our review.

84. The Central Tender Review Board gave concurrent approval on 15

September 2006, to award the contract to the recommended tenderer, Sonitra Ltd

at the offer price of USD $ 24,882,462.46 and GH¢ 27,233,783.95 (the total

equivalent USD$ 54,458,972). In accordance with Section 64 (2)b of the Public

Procurement Act 2003, Act 663 the Board also gave approval to GHA to negotiate

the contract price with the lowest recommended tenderer.

85. As a result of the negotiations on 28 September 2006, some works and

services were scaled down and a lumpsum discount of US$511,000.00 was given


by Sonitra Limited, reducing the contract price to the MRH’s set budget limit of

USD$ 43,000,000. The final negotiated contract price thus comprised a local

component of GH¢ 23,558,960.95 and a foreign component of USD$ 17, 414,

431.78 (a total equivalent of USD$ 43, 000, 000). Table 6 shows the items that were

scaled down during the negotiation, their BoQ reference numbers, initial amount

and final negotiated amount in the BoQ.

Table 6: Items scaled down during the contract negotiation with Sonitra Limited

BoQ

Reference

Description Provisional Sum

(US$) – (Initial)

Provisional Sum

(US$) –

(Negotiated)

A211.1 Engineer’s Office 75,376.23 0

A212.1 Laboratory Equipment 19,942.42 0

A222.1 Telephone and E-mail Services 1,966.33 0

A231.1 Equipment/Furniture for ER’s

Office

103,778.19 0

A232.1 Equipment/Furniture for Lab 207,556.37 0

A260 Testing of materials 28,403.36 0

A420.1 Service Diversion 1,966.40 0

A420.3 Compensation to Property

Owners

937,204.56 0

A270.1 Adjustment Allowances 96,148.45 0

Total 1,472,342.31

Source: Extract from minutes of negotiation between GHA and Messrs Sonitra Limited

86. GHA accepted Sonitra’s tender by a letter dated 6 October 2006. On

submission of a Performance Security on 18 October 2006, the contract was signed

on 27 October 2006 by the Employer (Ministry of Transport) and the contractor

(Sonitra Ltd) and witnessed by GHA and the contractor’s representative. The

duration for the project was 30 calendar months for the Construction of Three-


Lane Dual Carriageway from Tetteh Quashie Interchange to Madina with Two

No. Interchanges and Service Lanes (4.6 Km).

87. GHA followed the laid down procedures in engaging the services of Sonitra

Limited to award the contract for the construction of the Tetteh Quarshie-Madina

road project.

3.3.2 Procurement of China Jiangxi Corporation for International Economic and

Technical Cooperation for the construction of the Ayamfuri-New Obuase Road

Project

88. Section 45, 51, 53, 54, 55 and 59 of the Public Procurement Act, 2003 (Act

663) governs effective international competitive tendering and award of contract.

The process involves the following:

Advertisement

Responding to queries by bidders

Opening of bids

Evaluation of bids

Award of Contract and

Submission of performance securities

89. We noted that GHA published an advert for the Ayanfuri-New Obuase

Road Project in the Ghanaian Times Newspaper of Tuesday 9 November 2010. The

mode of procurement was International Competitive Bidding (ICB). The deadline

for the submission of bids was at 10:00am on 11 January 2011. The bidders were

expected to submit a bid security of US$ 1.0 million valid for 120 days.

90. Twenty (20) international construction firms responded and bought the

tender documents which was priced at US$300.00. GHA organised a pre-bid

meeting on 7 December 2010 to address queries which the bidders raised on the

information in the bid document. As a result of the meeting and subsequent


queries by the bidders, GHA issued addendum 1 and 2 to the bid document in

response to the queries on 15 December 2010 and 23 December 2010 respectively.

GHA subsequently issued addendum 3 to the bid document on 11 January 2011

whiles extending the deadline for submission to 25 January 2011.

91. We noted that 11 out of 20 firms submitted bids for the project on the

deadline date of 25 January 2011. The tender opening was attended by 11 Officials

of GHA including the Deputy Chief Executive (Development) as the chairman.

Other attendees were a representative from the Ministry of Roads and Highways,

and 20 representatives from the bidding firms. The bids submitted by bidders are

shown in Table 6. The Engineer’s Estimate recorded at the bid opening was GH¢

56,644,069.05.

Table 7 : Bidders and bid prices at tender opening as recorded

No. Firm Bid Price

Local (GH¢) Foreign

1 Jiangxi Zhongmei Eng. Const. 21,060,328.86 and US$ 20,883,755.19

2 China Jiangsu Jianda Const. 69,579,004.35 or US$ 47,012,840.78

3 Posco Eng. & Const. Ltd 11,119,178.21 and US$ 28,351,763.34

4 China Harbour Eng. Co. Ltd. 32,696,486.36 and US$ 9,469,252.64

5 MSF Construction 20,187,233.47 and Euro 20,260,322.73

6 China Railway Wuju 31,263,637.33 and US$ 9,017,814.94

7 China Jiangxi Corp for

International Economic and

Technical cooperation

13,837,344.05 and US$ 20,672,163.26

8 Monte Adriano 13,342,604.97 and US$ 25,610,340.40

9 Progressive Construction Ltd. 62,464,994.87 and Nil

10 Abdullah A.M. Al Khodari 109,241,238.70 Nil

11 Oumarou Kanazoe/ Kanazoe 10,442,282.14 US$ 25,971,342.81

Source: Audit review of minutes of tender opening


92. GHA constituted a five-member evaluation panel with a deadline for

reporting as 18 February 2011. The panel comprised the following:

Principal Engineer GHA (RSED) – chairman

Senior Quantity Surveyor GHA – member

Senior Engineer GHA – member/secretary

Quantity Surveyor GHA – member

Senior Quantity Surveyor DUR – member.

93. The evaluation panel submitted a draft evaluation report through the GHA

Chief Executive to the Ministry of Roads and Highways on 24 March 2011. The

panel recommended M/S China Harbour Engineering Company Limited for the

execution of the contract with a corrected bid price of GH¢ 46,616,287.74 converted

to single currency which was 17.99% below the Engineer’s Estimate.

94. We found in a correspondence dated 14 April 2011 that, the Ministry

queried the evaluation report and requested GHA to provide a copy of the blank

tender document sold and the bids of the top four ranked bidders. The report was

queried because the Ministry was of the opinion that the justification for

disqualifying the lowest bidder (China Jiangxi Corporation for International

Economic and Technical Cooperation) based on not meeting the annual turnover

requirement stated in the bid document was not satisfactory even though GHA

stated its reasons for doing so. GHA revised and resubmitted the evaluation report

to the Ministry on 29 July 2011 for onward submission to the World Bank for their

no objection. The revised evaluation report recommended M/S China Jiangxi

Corporation for International Economic and Technical Cooperation for the

execution of the contract with a corrected bid price of GH¢ 13,708,256.55 and US$

20,801,250.75 which was 22.17% below the Engineer’s Estimate with a construction

period of 24 calendar months. In that regard GHA requested the bidders to extend

their bid validities to 25 January 2012, which they complied.


95. The World Bank in a letter dated 20 October 2011 queried the evaluation

report submitted and asked the Ministry to submit answers to the increase in cost

estimates from US$ 29.0 million to US$ 39.0 million equivalent. The Ministry

submitted its revised bid evaluation to the World Bank on the 15 December 2011.

The World Bank requested further clarifications and a downward review of the

cost of the project in February 2012 to fall within the budget threshold of US$ 29.0

million provided under the funding agreement. GHA reduced the scope of works,

adjusted the general items downward and reviewed the pavement design until

the World Bank was satisfied that all its queries had been sufficiently addressed,

and the project was within the threshold of the funding budget. Due to the delay

in obtaining the “no objection” from the World Bank, GHA requested the bidders

to extend their bid validity and security further for another 120 days (up to 25

August 2012).

96. On 26 September 2012 GHA wrote a letter of acceptance to M/S China

Jiangxi Corporation for International Economic and Technical Cooperation

(CIETEC), which was responded to on 3 October 2012. GHA and M/S China

Jiangxi CIETC met and the contract price was negotiated downwards from GH¢

13,708,256.55 and US$ 20,801,250.75. by 0.5% for each component.

97. The Contract was signed on 21 December 2012 by the Employer and the

Contractor witnessed by GHA and the contractor’s representative. The contract

sum was GH¢ 13,641,596.55 and US$ 20,694,136.82 with a construction period of

24 calendar months. M/S China Jiangxi CIETC provided a performance security

dated 14 October 2012 in the sums of US$ 2,069,413.68 and GH¢ 1,364,159.66

respectively and expiring on 28 December 2014.

98. GHA followed the laid down procedures in engaging the services of M/S

China Jiangxi CIETC to construct the Ayamfuri – New Obuase road project.


However, the delay in obtaining the “no objection” from the World Bank resulted

in the delay of the procurement process.

3.3.3 Procurement of Consultants and Contractors for the Bolgatanga-Bawku-

Polimakom Road

3.3.3.1 Procurement of Messrs Queiroz Galvao Construction Limited for the

construction of the Bolgatanga-Bawku-Polimakom Road Project

99. 44. For the procurement of the Bolgatanga-Bawku-Polimakom road project,

GHA used Single/Sole Sourcing procurement method. This method is used to

procure works from one selected supplier/contractor without competition even

though there may be other suppliers that can carry out the works. Section 40 (1)

(a-d) of the Public Procurement Act 2003 (Act 663) allows the Single/Sole method

when there is exclusivity, urgency, emergency, continuity and compatibility

subject to the approval of the Public Procurement Authority.

100. We noted from review of the negotiation report on the Bolgatanga-Bawku-

Polimakom road project that GHA invited Messrs Queiroz Galvao Construction

Limited to inspect the road corridor and submit a proposal for the reconstruction

because the company had demonstrated on other projects that it has the technical

capabilities and experience in handling such works.

101. GHA prepared a BoQ that Messrs Queiroz Galvao Construction Ltd. used

as a guide to prepare its financial proposal and submitted a quote of US$

176,115,129.23 for consideration. Compared with GHA estimates of US$

137,731,076.80, the amount submitted by the Contractor was above by 27.87% .

102. On 15 June 2016, Messrs Queiroz Galvao Construction Limited was invited

for negotiations. The negotiation team was made up of Director, Quantity

Surveying-GHA, Principal Quantity Surveyor-GHA, Deputy Director, Planning-


Ministry of Roads and Highways, Communication Manager-Queiroz Galvao and

Quantity Surveyor-Queiroz Galvao.

103. After the negotiation, the financial proposal of Queiroz Galvao reduced

from US$ 176,115,129.23 to US$ 160,316,015.97 (representing US$

1,147,587.89/km) whilst that of GHA went up from the US$ 137,731,076.80 to US$

147,637,316.91 (representing US$ 1,036,151.29/km). This was because during the

negotiations, both parties realised that the rates of the contractor were high and

that of GHA were low and so a middle ground had to be reached. As a result,

GHA revised it rates upwards whiles the contractor revised its rates downwards

to arrive at the final negotiated figure of US$ 160,316,015.97.The revised estimate

of Queiroz Galvao became 8.59% higher than that of GHA’s revised estimates.

During the negotiations, GHA asked Queiroz Galvao to design, dismantle and

reconstruct three concrete bridges located at Km 1+800 (Zuarungu), Km 30+800

(Tilli) and Km 61+700 (Zebilla).

104. GHA in a letter dated 26 August 2016 wrote to Queiroz Galvao accepting

and a contract was signed by the Minister for Roads and Highways on behalf of

Government of the Republic of Ghana and Construtora Queiroz Galvao on the 14

September 2016 at a contract sum of US$ 160,316,015.97. The duration for the

contract was 30 calendar months. The contractor submitted a Performance Bond

of GH¢ 183,823,153.39 (30% of contract sum) from Vanguard Assurance which was

valid for 4 years.

105. We noted that, although Section 40 (1) (a-d) of the Public Procurement Act

2003 (Act 663) allows for Single/Sole method GHA needed to demonstrate the

justification for using single source as an option and getting approval from the

PPA. Our review of the documents and correspondence files did not show that

GHA followed the laid down procedures in engaging the services of Messrs


Queiroz Galvao Construction Limited to award for the construction of the

Bolgatanga-Bawku-Polimakom Road Project.

3.3.3.1 Procurement of Messrs. Delin Consult Limited

106. Section 38 of the Public Procurement Act 2003 (Act 663) allows restricted

tendering subject to the approval of Public Procurement Authority (PPA) if

services are available only from a limited number of consultants or if the time and

cost required to examine and evaluate a large number of tenders is

disproportionate to the value of the service. Section 39 of the PPA Act also states

that in carrying out Restrictive tendering the entity is required to invite in a non-

discriminately manner consultants who can provide the service and publish in the

public procurement bulletin notice of the selective tendering award.

107. From review of correspondence, we noted that GHA sought PPA approval

to use restricted tendering to procure consultant for the Bolgatanga-Bawku-

Polimakom road project on 21 July 2016 and obtained approval on 26 August 2016.

We noted from the evaluation report that in September 2016, GHA issued Request

for Proposals (RFP) to three firms to provide proposals for the consultancy

services for the construction supervision of Bolgatanga-Bawku-Polimakom

Highway including Bawku-Bypass. The three firms which submitted their

proposals were Messr Daovtech Consult Limited (Daovtech), Messr Delin Consult

Limited (Delin) and Messr KPH Consult Limited (KPH).

108. After the submission and opening of proposals on 26 September 2016, the

Director of Planning set up an evaluation panel made up of the Chief Engineer

(Bridges division) as chairman with members being Principal Quantity Surveyor

(Quantity Surveying Division), Senior Engineer (Survey and Design Division),

Engineer (Contracts Division) and Engineer (Planning Division) to evaluate the

technical proposals.


109. GHA followed Section 74 of the PPA 2003 (Act 663) as amended by Section

36 of Act 914 in evaluating the technical proposals and the result of the process is

shown in Table 8.

Table 8: Technical evaluation criteria with scores for the proposed consultants

Evaluation Criteria Max.

Marks

Consultants

Delin Daovtech KPH

Specific experience relevant to the

assignment

10.00 4.00 3.20 4.20

Approach to the assignment 30.00 25.20 16.60 13.60

Qualification and competence of key staff 60.00 54.54 37.74 11.56

Total mark 100.00 83.74 54.52 29.36

Source: Audit team review of technical evaluation report dated October 2016

110. We noted that the pass mark set for the technical proposals was 80%. From

Table 8, Messrs. Delin Consult Limited which scored more than the 80% had its

financial proposals opened on 8 November 2016. The financial proposal quoted

by Messrs Delin Consult was US$ 3,431,800.00 (GH¢ 13,543,598.70). The

evaluation panel stated that based on the technical and financial scores obtained,

Messrs Delin Consult was qualified to undertake the assignment.

111. The evaluation panel in line with Section 75 (7) of the PPA, Act 663

recommended that GHA invites Delin Consult for negotiations on their evaluated

price of GH¢ 13,543,598.70 exclusive of taxes to provide Consultancy Services for

the construction Supervision of Bolgatanga-Bawku-Polimakom Highway

including Bawku Bypass for 32 calendar months.

112. The team however did not see any documentary evidence on the

negotiations that were supposed to be carried out between GHA and Delin

Consult before the acceptance of the contract. Again, GHA could not provide the


contract document for the team to verify the acceptance, the date of signing and

the contract sum.

Conclusion

113. From our review of documents, GHA generally followed the procurement

laws and guidelines in obtaining the services of the contractors for the three

projects. Sufficient time was also allocated to enable contractors purchase and

submits bids for evaluation. Nevertheless, the audit team could not validate the

fairness and transparency of the processes due to the absence of evaluation reports

and approval letters on the procurement of the supervision consultant for the

Ayamfuri-New Obuase road project, and procurement of Sonitra Limited for the

Tetteh Quarshie Madina road project. There was no reason for the use of Sole

sourcing and restricted tendering as a preferred method for the Queiroz Galvao

Construction Limited and Delin Consult other than to confirm lack of planning

for the project.

Recommendation

114. Our review of procurement for both consultants and contractors show that

the PPA guidelines were generally met. However, the process could be improved

to enhance accountability and to guarantee value for money.

115. To improve upon the procurement process, we recommend that GHA

should;

i. Prepare adequately through planning to limit the use of sole sourcing,

ii. Document all the processes leading to the award of contract including

evaluation reports, and

iii. Limit the scaling down of the scope of works as a means of reducing

contract sums during negotiations with winning bidders


3.4.0 Implementation of the project (managing scope, cost, time and ensuring

project quality)

116. Project implementation is the stage when the project team puts all the plans

initiated to deliver the works for its intended use. During implementation, GHA

is to ensure that processes are put in place to manage and control projects scope,

schedules and to ensure project quality. A poorly managed implementation stage

poses a risk to timely completion and adherence to project budget. We expect that

GHA had planned to implement the projects using baseline schedules which was

to guide them track progress of the works, payments for work done and manage

scope so as not to escalate project cost.

117. We reviewed the sources of variations that contributed to changes in scope

and assessed whether the scope changes were avoidable, necessary, and how these

changes impacted the project cost. We employed our audit methodology to review

the processes for controlling project schedules and whether GHA put in

appropriate steps to mitigate project delay. We also looked at the payment for

works and the quality control and assurance systems employed to deliver the

project to contract specifications.

118. The results of our assessment of the implementation of the selected road

projects have been presented under the following headings:

Scope management (Variations)

Cost management (Payment for works)

Time management (Completing the project on time) and

Ensuring project Quality (Delivering the project to the specified quality)


3.4.1 Implementation of The Tetteh Quarshie- Madina Road Project

3.4.1.1 Scope management (variations)

119. The scope of the Tetteh Quashie- Madina project was to construct a 4.6 km

dual carriage asphalt road with two interchanges at Legon and Atomic Junction.

Each carriageway is to have three lanes and a minimum width of 10.5m. There are

two-lane service roads on both sides of the two interchanges. The pavement

structure of the road is 750mm thick comprising 40mm thick asphalt wearing

course, 60mm thick binding course, 200mm thick crushed stone base, 200mm thick

natural gravel base and 250mm thick natural gravel sub-base. There are also pipe

and box culverts; surface water drainage works including channels and slope

protections; and construction of junctions, accesses, bus stops and lay-bys.

120. Under Clause 51 of the General conditions of contract, the Engineer (GHA)

has authority to make any variation of form, quality and quantity of the works

which is considered necessary and appropriate. Sub-Clause 2.1(e) of the Special

Conditions of contract however requires the Engineer (GHA) to obtain specific

approval from the employer (MRH) when issuing variations that would increase

the effective contract price by 15 percent or more. Also, the PPA, Act 663, Section

87 (1) requires the procurement entity (GHA) to obtain clearance from the Tender

Review Board (CTRB) that reviewed the contract, where a variations order result

in an aggregate increase in the contract sum by more than 10 percent.

121. We expect the completed works to be within the planned scope and all

variations to the scope to be justified and to have the required approvals from the

MRH and the appropriate Tender Review Board as required by the provisions of

the PPA, Act 663.

122. We reviewed progress reports, variation orders, and site inspections, and

found that 25 variation orders were issued in the course of the project which

resulted in the cost of the project increasing by GH 31,256,849.42 and US$


16,190,746.50 from the original contract sum of GH¢ 23,558, 960.95 and US$

17,414,431.78 detail of which is shown in Appendix 7.

123. Of the 25 Variation orders, 22 were for works that related to the Tetteh

Quashie-Madina road, whiles three were for other additional works unrelated to

the project. Table 9 shows the values of variations for both related and unrelated

additional works in the two currencies of the contract and as percentages of the

original contract price.

Table 9: Composition of variations in relation to the original contract sum

Amount in GH¢ Amount in US$

Original Contract Sum 23,558, 960.95 17,414,431.78

Variation Orders: 31,256,849.42 16,190,746.50

% of Total V.O.s of Contract sum 133% 93%

V.O.s related to the project

% of contract sum

19,634,952.03

83%

10,021,120.59

58%

V.O.s unrelated to the project

% of contract sum

11,621,897.39

49%

6,169,625.91

35%

Source: Audit team review and analysis of variations

124. On examining GHA’s scope/variations management of the Tetteh

Quarshie- Madina project, we found the following issues which we have

presented under following headings;

Significant differences between estimated quantities and implemented

quantities.

Reintroduction of items taken out from contract before commencement of

construction

Variation orders for additional works unrelated to the project.

Unapproved variation orders


Significant differences between estimated quantities and implemented

quantities

125. We compared the works estimated in the contract BoQ with measured

quantities and valuation of actual works executed (in the IPC) and found that the

actual quantities executed varied significantly from what was estimated in the

contract BoQ. These works as quantified in the contract BoQ were estimated to

cost GH¢ 21,364,292.69 and US$ 16,981,173.66 but ended up costing GH¢

45,360,890.72 and US$ 30,427,510.83 representing an increase of 112% and 79%

respectively. Examples of these items that increased were;

i. The acquisition of streetlight and traffic signalization materials for which a

provisional sum of US$ 1,000,000 was inserted in the BOQ, but ended up

costing US$ 1,338,787.87 and GHC 5,090,806.5.

ii. Earthworks which was estimated in the BOQ as GHC 2,884,025.81 and US$

2,096,265.90; but ended up costing GHC 3,582,855.70 and US$ 2,598,125.35.

This was largely due to the volume of excavation below ground surface soil

layer increasing by 112,087 m3; volume of excavation of trenches for

culverts increasing by 12,806 m3; and the placing and compaction of 48,406

m3 of imported hardcore filling which was not originally provided for in

the BoQ.

iii. Concrete structures including, culverts, retaining walls, concrete bus bays,

concrete pipe works, u-drains which were estimated in the BoQ as GHC

4,263,652.63 and US$ 3,086,940.05; but ended up costing GH¢ 4,309,691.29

and US$ 3,019,154.7.

iv. Roads and pavings which were estimated as GHC 5,292,094.34 and US$

3,836,479.14; but ended up costing GHC 5,921,388.78 and US$ 4,292,505.07.


v. Interchanges at Atomic Junction and Legon for which a provisional sum of

GH¢ 5,524,746 and US$ 4,000,000 was made in the contract BoQ; but ended

up costing GH¢ 15,697,908.53 and US$ 11,495,466.19.

126. The significant variance in cost between executed and estimated works

indicated that the estimates of quantities and costs at which the works were

tendered and awarded were below the scope of works intended. This was as a

result of the fact that the 1998 estimates were mainly based on provisional sums,

and were not reviewed and updated before the project was packaged for tender

in 2006.

Reintroduction of items taken out from contract before commencement of

construction

127. We also noted that 17 of the 25 Variation Orders issued were for the

reintroduction of work items that were removed just before the signing of the

contract, in order to match the contract sum to the project budget limit of US$

43,000,000. These works generally related to engineer’s office accommodation and

equipment; relocation of utilities; and compensation payments to property

owners. These works were fundamental and indispensable to the project and

therefore should have been included in the original scope of works when the

contract was awarded. During implementation, the works were reintroduced as

Variation Orders numbers 1,2A,3,4,5,6,7,8,9,10,12,16,19,21,22,23, and 24.

128. The decision to scale down the scope of works to meet budget limits

undermined the efficiency of the planning process as it created the impression of

making savings on the project but was actually a zero-sum game which hid

inevitable costs that should have been recognized and planned for.


Variation orders for additional works unrelated to the project.

129. We also found from our reviews that three variation orders (V.O. Nos. 11,

13, 20) amounting to GH¢ 11, 621,897.39 and US$ 6, 169,625.91, were issued to

instruct the contractor to carry out works that were not related to the Tetteh

Quashie-Madina road and therefore should have been procured separately as

different projects. A summary of these works is shown in Table 10 and detailed in

Appendix 7.

Table 10: A summary of works unconnected to the Tetteh Quashie-Madina road but were

executed as Variations

Variation

Order No.

Brief Description of Works Estimated Net Additions

Local GHȼ Foreign US$

11 Various works carried out at:

o Accra shopping mall

o Additional lane to Northwest loop of the

interchange

o Spintex underpass

o University of Ghana

Widen Baatsona Junction and signalize

Spintex Road (New Alignment)

Additional box culvert under the motorway

4,371,386.29

13 Construction of Kasoa Toll Plaza 600,613.87 434,838.25

20 Community 18 bridge

Improvement of Abattoir road to steel

bridge;

Asphalt overlay improvement to community

18 road

Asphalt overlay improvement to Atomic

Junction to Rawlings Circle road

Right-out and right-in slip roads linking the

motorway and community 18 bridge

Variation to shopping mall loops, Spintex.

6,649,897.23 5,734,787.66

Total 11,621,897.39 6,169,625.91

Source: Audit team review and analysis of variation orders

130. Management of GHA explained that these unrelated works were

emergency works and the urgency required meant that conducting separate


procurement processes and paying for mobilization of new contractors would not

have been economical. The Ministry of Roads and Highways through GHA

engaged Messrs Sonitra Limited to carry out these works as the contractor was

already on site executing the Tetteh Quashie-Madina road project and had also

demonstrated good competence on the job. Nevertheless, the practice of adding

on new projects to an ongoing project makes contract administration difficult as it

complicates project monitoring and tracking, project reporting, and leads to less

optimized decision-taking which contributes to delays and cost overruns.

Unapproved variation orders

131. On issuing V.O. 11, the aggregate value of all previous variations (i.e. V.O.1

to V.O.11) exceeded 10% of the contract sum and this required that GHA obtained

approval from CTRB for V.O. 11 and all 14 subsequent V.O.s, in line with Section

87(1) of the PPA, Act 663. We noted that GHA obtained approval for only two of

the 15 variations which required approval from the CTRB.

132. Also, from September 2009 when V.O.13 was issued, the cumulative

variations exceeded 15% of the effective contract sum, and in line with Sub-Clause

2.1(e) of the Special Conditions of contract, this required V.O.13 and all subsequent

V.O.s (i.e. 12 V.O.s in total) to be approved by the MRH before they were

implemented. From our review of project files, we found that only MRH

approvals for V.O. 3 and V.O. 20 were kept on file. GHA could not provide proof

that it obtained approvals from the MRH for the other 10 V.O.s. Failure to obtain

the necessary approvals for variation orders implied that GHA committed

government to projects and expenditures without authorization.


3.4.1.2 Cost management (Payment for works)

133. According to Sub-Clause 60.1 of the Special Conditions of contract, the

contractor is to submit monthly statements showing the amounts to which the

contractor considers himself to be entitled which shall include the estimated

contract value of works at base unit rates and prices; the value of variations;

fluctuation payments to reflect changes in costs and legislation; the value of

materials and plants delivered to site; amount withheld as retention; amount

deducted as repayment of advance payments; and any other sum that the

contractor is entitled to.

134. The Engineer on receipt of the statement, is to issue an Interim Payment

Certificate (IPC), certifying the amount due the contractor. Sub-Clause 60.8

requires the Employer to pay the amount certified on the IPC within 56 days after

the contractor has submitted the monthly statement to the Engineer for

certification. In the event of default by the Employer, the contractor shall be

entitled to interest on delayed payments compounded monthly at the Bank of

Ghana prime rate plus 2% (for the local component) and the London Inter-Bank

On-Lending Rate (LIBOR) plus 1% (for the foreign component), on all outstanding

amounts, from the date the amount should have been paid.

135. To determine whether the amounts certified by GHA and paid to the

contractor were for actual works done, valid and in accordance with the contract,

we reviewed payment documentation i.e. IPCs, valuations of work done,

calculations of fluctuations, calculations for interest on delayed payments, and the

contractor’s claims for losses and expenses incurred due to extensions of time

granted during the course of the project. We also visited the site to inspect the

project and noted the works done.

136. We found that between the first IPC date of 3 November 2006 and the last

IPC date 1 July 2019, 103 IPCs (i.e. 77 for works and 26 for other claims) were


issued by GHA, certifying a total amount of GH¢ 170,477,493.66 and US$

49,974,242.82 to the contractor. This was 624% more than the Cedi component and

187% more than the US Dollar component of the original contract sum of GH¢

23,558,960.95 and US$ 17,414,431.78. Details on IPCs issued in the course of the

project are shown in Appendix 9. The increase to the project cost was the result

of;

Extra costs due to variations and remeasured quantities

Price Fluctuations

Contractors claims for extension of time

Interest on delayed Payment

Extra costs due to variations and remeasured quantities

137. The total additional cost due to variations orders and remeasurements of

quantities was GH¢ 35,275,945.22 and US$ 19,600,234.47 which increased the

contract sum by 149.7% (Cedi component) and 112.5% (US Dollar). Out of this total

amount, GH¢ 23,645,047.83 (i.e. 100.4% of the Cedi component) and US$

13,430,608.56 (77.1% of the Dollar component) related to the Tetteh Quarshie –

Madina road project. Whilst, GH¢ 11,621,897.39 (49.3% of Cedi component) and

US$ 6,169,625.91 (35.4% of the component) were for execution of unrelated works

which have been detailed in Table 10 under scope management.

Price Fluctuations

138. Price fluctuations which amounted to GHC 61,891,295.69 and US$

5,240,469.41 were paid pursuant to Clause 70.1 of the Special conditions of contract

which allows specified amounts payable to the contractor to be adjusted to reflect

increases and decreases in costs of labour, materials, plants and equipment, by

application of a price adjustment factor determined by a formula stated in the


contract. The total fluctuation payments on the project were respectively 263% and

30% of the Cedi and the US Dollar components of the contract sum.

Contractors claims for extension of time

139. There were payments in respect of contractors claims for expenses due to

extensions of time, which was GHC 32,605,057.14 and US$ 7,575,794.56. The

payments of contractor’s claims for expenses were made pursuant to Clause 53.5

of the General Conditions of the contract, which entitled the contractor to

additional payments for losses and expenses the contractor had incurred due to

extensions of time resulting from reduction and suspension of works. These

expenses according to the contractor, comprised site and head office overhead

costs, depreciation and ownership cost of idling equipment, cost of idling

personnel for construction activities, cost of extending validity period of

performance security, and the cost of extending the insurance cover. The

contractor’s claims for these expenses due to extensions of time were paid via IPCs

58A, 77A and 77B, and was respectively 138% and 44% of the Cedi and the US

Dollar components of the contract sum.

Interest claims on delayed Payment

140. We compared the dates the contractor was paid against the due dates for

payment according to the contract, to ascertain whether amounts certified by the

Engineer were paid within the 56 days stipulated by Sub-Clause 60.8 of the

Conditions of contract. From our review of the payment of 103 IPCs, we found

that for 96 IPCs for which information was available to compute the period of

payments of the Cedi component of the IPCs, there were payment delays ranging

from 39 to 986 days beyond the stipulated 56 days. Six of the remaining seven IPCs

did not have claim submission dates and/or payment dates to enable us compute

the periods taken to pay for IPCs.


141. Similarly, for the US Dollar component payments, all 94 IPCs for which

information was available to compute the period of payments, experienced delays

in payment ranging from 42 to 1,507 days beyond 56 days. As of 30 June 2019 (the

time of our audit), the last issued IPC (i.e. IPC 77B) had not been paid and had

been outstanding for 50 days. The contractor made claims for interests on delayed

payments as per the contract amounting to GH¢ 18,998,533.10 and US$ 560,842.11

being 23% and 11% respectively of the total cost of the project. (The details of the

delays in payment is shown in Appendix 9).

142. From our analysis, delays in the payment of IPCs occurred in two forms.

The first was delay in the time taken to process IPCs for payments going beyond

the stipulated 56 days; and the second was delay due to Ministry of Finance (MoF)

failing to pay IPCs promptly after IPCs have been processed for payment.

143. We noted that GHA’s site representative vetted and validated the

contractor’s claims for payment subsequently issued the IPCs. GHA’s site

representative forwarded the IPCs to RCC for endorsement and onward

submission to GHA Head Office where they were crosschecked for accuracy. The

IPCs were forwarded to MRH for onward submission to the MoF for payment.

144. We reviewed 10 IPCs that were made available to us to determine the time

taken to process the IPCs at the various processing points. Table 11 shows the time

spent at each point in the processing of IPCs before they were submitted to MoF

for payment.


Table 11: Details of delay beyond 56 days

IPC

No.

Resident

Engineer

RCC GHA Total days

spent in

processing

IPCs

Delay beyond 56 days

Delay due

to

processing

Delay due to

non-payment

by MoF

Total Delay

(a) (b) (c) (P = a + b + c) D = (P – 56) (X) (D+X)

71 22 28 54 104 48 304 352

72 99 3 40 142 86 656 742

73 42 3 40 85 29 656 685

74 17 19 40 76 20 602 622

75 27 15 24 66 10 560 570

76 23 18 17 58 2 501 503

77 48 15 48 111 55 313 368

71A 19 14 181 214 158 81 239

74A 55 8 40 103 47 602 649

74B 72 12 19 103 47 602 649

Source: Audit team review of project IPCs

145. From Table 12, IPCs took between 2 and 158 days beyond the stipulated 56

days to process for submission to Ministry of Roads and Highways for onward

submission to Ministry of Finance. At Ministry of Finance, there were further

delays in honouring the IPCs ranging from 81 to 656 days.

146. We noted that GHA did not have institutional policies on how long IPCs

should stay at each processing point before the stipulated 56 elapses. As a result,

there were undue delays in processing the IPCs for payment. Also, the audit team

found through interviews that these delays were because of insufficient or

unavailable funds to meet project payment obligations when they fell due. This

was due to the fact that funds were not secured and ring-fenced for project, and


payments had to be made from general budgetary allocations to road sector which

were often spread too thin over various competing projects. For example, in 2014,

GH¢ 747,030,416.00 was allocated to the whole road sector but no payments were

made on the Tetteh Quashie-Madina road project although a total IPC value of

GH¢ 8,547,778.00 and US$ 2,605,119.00 had been certified for payment in that year.

3.4.1.3 Time management (Completing the works on time)

147. Construction works for the Tetteh Quashie-Madina Road with two

interchanges commenced on 17 November 2006 and was scheduled to be

completed on 17 May 2009, as the contract duration was 30 calendar months. We

noted from the Sectional Taking-Over Certificate that section 1+250 to 3 + 000 was

completed and taken over from the contractor on 23 May 2009. From review of

correspondences between GHA and the contractor, we found that in the course of

construction, a number of events caused by the Employer (MRH) and the

Employer’s representative (GHA) resulted in eight Extensions of Time (EOT) and

consequent revisions to the expected completion date from 17 May 2009 to 19

February 2019. The stated reasons and durations for the Extensions of Time (EOT)

are presented in Table 12.


Table 12: Reasons and durations for Extensions of Time issued on the Tetteh Quarshie-

Madina project

Extension of time Reasons for Extension of time Duration (Months)

1st Extension

17 May 2009 – 15

October 2009

Delays in issuing drawings to the

Contractor. Variation to the specification

of the drainage system.

5

2nd Extension

15 October 2009 –

15 March 2010

Delay in issuing drawings for the Legon

Underpass after approval for alternative

designs of Reinforced Earth Walls.

5

3rd Extension

15 March 2010 – 15

January 2011

Obstructions caused by existing high-

tension pylons and various utility lines

in the Right of Way. Contractor’s

inability to start execution of reinforced

earth walls due to existing utilities

10

4th Extension

15 January 2011 – 1

November 2011

Continuing presence of high-tension

pylons and various utility lines in the

Right of Way. Contractor was not able to

start execution of reinforced earth walls

due to existing utilities

9.5

5th Extension

1 November 2011 –

24 January 2012

Delays in handing over site to contractor

for Legon Underpass after relocation of

GT Vodafone cables

2.7

6th Extension

24 January 2012 –

31 May 2013

Delays in issuing design drawings to

correct identified faults in the design of

pier caps. Recurrent delay in payment of

IPC’s. Works were reduced and

suspended at several stages

16.22

7th Extension

31 May 2013 – 30

June 2017

Non-payment of IPC’s resulting in

suspension of works on site

49

8th Extension

30 June 2017 – 13

February 2019

Non-payment of IPC’s resulting in

suspension of works on site.

20

Total period of delay in months 117.42

Source: Audit team review of project correspondence and taking over certificates


148. As shown in Table 12 there were six EOTs which revised the expected

completion date to 31 May 2013. This was as a result of the following documented

reasons;

delays in handing over site and drawings to the contactor,

variations to specifications and designs,

obstructions to progress caused by existing utilities, and

delays in payment of IPCs

149. We noted that the contractor served notice on 2 October 2012 to MRH

through GHA, of its intention to reduce the rate of works due to continuing

problems of non-payment of IPCs and therefore its inability to commit to the 31

May 2013 completion date. Subsequently, the contractor gradually reduced the

rate of works from November 2012 and completely suspended works from

November 2015 to September 2016. The contractor resumed works in December

2016 and was given approval for a seventh EOT which changed the expected

completion date from 31 May 2013 to 30 June 2017.

150. The problem of non-payment of IPCs persisted resulting in further delays

beyond 30 June 2017, which necessitated an eighth Extension of Time, resetting

the completion date to 30 February 2019. The remaining section of the road was

taken over on 13 February 2019, which was the final substantial completion date

as per the contract.

151. We noted that GHA began the Tetteh Quarshie-Madina road project

without the full set of designs and drawings for the major components of the road.

Consequently, the project was stalled as a result of planning deficiencies brought

about by unfinalized road designs and drawings, unknown extent utilities to be

relocated and buildings affected by the road project. The drawing and designs

were supposed to be finalised as part of the project planning phase and handed


over to the contractor prior to commencement of the project. However, the designs

and drawings issued to the contractor in stages.

152. In total, there was approximately 117 months (or 10 years) of time overrun

beyond the initial 30-month duration for completion of the works. The extensions

of time resulted in additional costs to the project as indicated under payment sub-

finding.

3.4.1.4 Delivering the road project to the quality specified

153. Under Clause 8.1 of the General Conditions of Contract, the contractor is

obliged to execute and complete the works and remedy any identified defects in

accordance with the contract. According to Clause 36.1, all materials, plants and

workmanship for the works should be of the respective kinds described in the

contract and be in accordance with the Engineer’s instructions, and subjected from

time to time to such tests as the Engineer may require at such places as specified

in the contract.

154. Among the tests specified in the contract for materials were;

Grading,

Compaction,

Concrete tests, and

Asphalt tests

To determine whether the work done by the contractor conformed to contract

specifications, we inspected and measured the works done on site, cored the road

surface and took measurements of the thickness of the samples of the asphaltic

concrete layer in the presence of representatives of the contractor and GHA. Table

13 shows measurements we took on site of the road width, verge, bicycle lane and

walkways compared with specified dimensions in the contract.


Table 13: Auditors’ measurements of Tetteh Quarshie - Madina Road compared with

contract specified dimensions.

Chainage

in meters

(km)

Width of the

carriageway

in meters.

(Specified

width=10.5m)

Width of

Verge in

meters.

(Specified

width=2m)

Width of

Bicycle lane

in meters.

(Specified

width=2.5m)

Width of

Walk Way

in meters.

(Specified

width=3m)

Remarks

0 + 100 R 10.5 1.97 2.49 2.54 Width of walk way

did not meet

specification


did not meet

specification


did not meet

specification

3 + 100 R 10.4 1.91 2.52 2.52 Width of verge and

walk way did not

meet specification

3 + 000 L 10.6 1.94 2.37 2.64 Width of walk way

did not meet

specification


did not meet

specification


did not meet

specification


did not meet

specification

4 + 350 R 6.6 1.95 2.47 2.53 Width of walkway

did not meet

specification

4 + 350 L 6.6 1.95 2.48 2.52 Width of walkway

did not meet

specification

(* represents service lane at Atomic Junction, L means left hand side and R means right hand side)

Source: Audit Field Inspection Results


155. From Table 13, the measurements of the road widths, verges, and bicycle

lanes met specification (given an assumed margin of error of 0.1m to compensate

for imperfections in measurement and calibrations). The measurements of the

walkways were in a range of 2.52m – 2.64m instead of the specified 3.0m.

156. We took 10 cores of the road asphalt surface layer at approximately 1 km

intervals from the two carriageways and measured the combined thicknesses of

the wearing and binder courses, to determine if they met the thickness

specification. Figure 2 shows the thickness measurements of the core samples

compared with the specified thickness of 100mm (shown as a red dashed line) and

the locations (chainages) at which the cores were taken. From Figure 2, the

thicknesses of 8 out of the 10 cores we measured, met the 100mm specification.

Figure 2: Measured thickness of asphalt core samples taken on the Tetteh Quarshie-

Madina road project

Source: Audit team inspection on 10 April 2019

120125

97

130

85

104 105115

110 110

0 + 100 R 1 + 600 R 2 + 600 R 3 + 100 R 4 + 350 R 4 + 350 L 3 + 000 L 2 + 500 L 1 + 000 L 0 + 500 L

Right Left

Th

ick

nes

s o

f co

re, m

m

Chainage

Measured thicknesses of core samples at various chainages

Passed Failed 100 mm thickness line


157. The samples were taken to the laboratory for testing to determine whether

the constituents of the asphalt concrete met specifications. The samples were

tested for the bulk density, air voids, bulk specific gravity, bitumen content and

grading. The laboratory results obtained are shown in Table 14. The laboratory

test results obtained indicated that the asphalt core samples tested were within the

specifications in the contract. See also Appendix 4 for details.

Table 14: Laboratory test results obtained for the Tetteh Quarshie-Madina road project

No. Average

Bulk

density

(gm/ml)

Average

Air

Voids

(%)

Bulk

Specific

Gravity

(gm/ml)

Asphalt

Bitumen

Content

(%)

Grading Average

Core

thickness

(mm)

Specifications

(Wearing

course)

3 - 5 4.5 – 5.5 40mm

Wearing

course batch 1

2.394 6.21 2.553 5.3 100% Within

Specification

38.75

Wearing

course batch 2

2.394 6.21 2.553 5.4 100% Within

Specification

Specifications

(Binder

course)

3 - 5 4.5 – 5.5 60mm

Binder course

batch 1

2.391 7.27 2.579 4.8 100% Within

Specification

72.87 Binder course

batch 2

2.391 7.27 2.579 4.5 100% Within

Specification

Source: Audit Service Consultant’s interpretation of laboratory test results on asphalt

core samples

158. We noted from our site inspections that even though the composition of the

asphalt met specifications, the road had developed pot holes at some sections of

the road from the first sectional taking over in 23 May 2009. Pictures of the

deteriorated sections observed is shown in Pictures 23 to 30. The road is supposed

to have a lifespan of 25years on condition of sustained routine maintenance


annually; and periodic maintenance of asphalt overlay which should be done once

the road surface condition has deteriorated to a level that is difficult to rectify by

routine maintenance, and is typically done between 6-8 years. We observed that

the 10 years of continuous use of the road without the regime of maintenance has

contributed to the early deterioration of the road even before the middle of the

project life as shown in pictures 22 to 29.

Picture 22: Pothole observed on the Tetteh

Quarshie Madina road




Picture 24: Deteriorated asphalt on the

Tetteh Quarshie Madina road

Picture 25: Expansion joint defect on the

atomic interchange concrete girder










Source : Audit team Inspection pictures taken by audit team on the Tetteh Quarshie-

Madina Road Project on 10 April 2019

3.4.2 Implementation of the Ayamfuri to New Obuase Road Project


159. The scope of the Ayamfuri New Obuase Road Project (Lot 1) was to

rehabilitate and construct 26.0km of asphalt road. Within the 26.0km were three

bridges, eight box culverts and 53 No. pipe culverts of varying dimensions. The

width of the road carriage way was 7.3m with 2.0m shoulders on both sides. The

Project was supervised by M/S SAI Engineering Pvt on behalf of GHA and the

Employer (Ministry of Roads and Highways).

160. We used the odometer of the car to determine the length of the road

constructed and found it to be 26.0km from Ayamfuri to New-Obuase as specified

in the contract. The bridges and culverts had also been constructed as specified in

the original scope at the points as determined in the drawings.

161. Section 7 Sub-clause 13.1 of the General Conditions of Contract gives

authority to the Engineer to approve variations. When the variations are in excess

of 3% of the Accepted Contract Amount, he must seek approval from the


Employer. This is to ensure that the Employer is able to control the number of

variations on the project.

162. We noted from review of correspondence that during site clearance, the

number of trees, properties and farms affected were more than the estimates in

the BoQ. There were 951 trees cut instead of 43 stated in the BoQ while the number

of persons to be compensated was 255, and this was not captured by the BoQ. The

number of person compensated were contained in a valuation report prepared

and presented by Land commission to the GHA dated 28 September 2015 .The

volume of earthworks was 401,229m3 up from 7,000m3 in the BoQ, hence a

variation in the contract. Ghana Highway Authority (GHA) also varied the road

design by realigning some sections of the road to make it safe for traffic. These

changes resulted in Variation Order (VO) No.1.

163. The Employer obtained approval from the Central Tender Review Board to

vary the contract as per VO No.1 in the net amounts of GH¢ 2,907,257.32 and US$

3,127,390.88 on 4 June 2014.We noted that GHA instructed the Resident Engineer

to implement variation order number 1 on 20 January 2015. The variation involved

additions listed in Table 15.


Table 15: Details of Variation Order No. 1

SI No. Item Description Additional amount required


1 General items 130,660.00 208,953.35

2 Earthwork 539,783.53 868,626.83

3 Additional pavement thickness 692,737.50 1,112,475.00

4 Additional drainage structures 313,079.25 503,135.44

5 Slope and stabilisation 32,920.00 148,892.00

6 Relocation of utilities 933,780.92 -

7 Price contingency 264,296.12 284,308.26

Total 2,907,257.32 3,127,390.88

Source: Audit team review of approved Variation order No. 1 dated 20 January 2015

164. On 15 May 2015, the Resident Engineer (R.E.) wrote to GHA to request for

approval for Variation Order No. 2 which was to cater for price contingency

(fluctuations). According to the R.E., the variation was necessitated by the fact that

the rates quoted in the BoQ at the time of tender in January 2011 had to be adjusted

to the current market rates. We however noted that the BoQ did not make

provision for contingency to cater for price fluctuations hence V.O. 2 was raised

to pay for the fluctuations in accordance with Clause 13.8 of the General

Conditions of Contract (adjustment for changes in cost). GHA per a letter date 17

August 2015 got approval from Ministry of Roads and Highways for variation

order amounting to GH¢ 14,769,720.85 and US$ 2,547,262.12.

165. GHA presented a request for no objection to the World Bank for variation

order No.3 on 9 October 2017 through the Ministry of Roads and Highways. This

was as a result of redesign of sections of the road and additions during

construction. The V.O. 3 included additions to general items, demolition and site


clearance, earthworks, roads and pavings, signs and markings and drainage

structures as shown in Table 16.

Table 16: Details of variation order No. 3

Source: Variation Order No.3 dated 15 August 2017

166. There were three variation orders raised on the project, the total of which

was GH¢ 22,573,895.05 for the cedi component and US$ 10,543,792.05 for the

United States of America dollar component as shown in Table 17.

Table 17: Summary of variation orders and contract sum on Ayamfuri-Obuase Road

(Lot1)


Original Contract Sum 13,641,596.55 20,694,136.81

Variation Order No. 1 2,907,257.32 3,127,390.88



Total 13,641,596.55 22,573,895.05 20,694,136.81 10,543,792.05

Revised Contract Sum 36,215,491.60 31,237,928.86

Item Description Additional amount required


General items 2,115,387.89 399,579.84

Demolition and site clearance 22,732.50 36,525.28

Earthworks 1,919,736.70 3,084,869.40

Roads and Pavings 59,477.01 95,567.21

Signs and Markings 22,155.00 35,606.00

Drainage Structures 757,427.79 1,216,991.31

Estimated Net Additions 4,896,916.88 4,869,139.05


Source: Audit team review of variation orders

167. The variation orders resulted in an increase of approximately 165.5% for the

GH¢ component and 50% for the USD component above the contract sum. Our

analysis showed that VO. 2, was occasioned by additional quantities of works

which were not part of the initial contract’s BoQ and unknown site conditions

which were encountered during construction. We also observed that the six-year

lapse between the completion of the design and construction also accounted for

some changes along the road corridor, especially increase in settlements along the

road corridor resulting in payment of more compensation.

168. We observed that if the BoQ had captured all items, the need to issue VO 1

and 3 would not have been necessary. Similarly, compensation payment cut off

point were not instituted to avoid individual taking advantage of compensation

payment to build along the road corridor. We also noted that the delay in

commencement of the project for six years resulted in the high level of fluctuation

payment.

3.4.2.2 Cost management (Payments for works)

169. Sub Clause 14.7 (a and b) of the General Conditions of contract stipulates

that the Employer shall pay the contractor the first instalment of the advance

payment within 42 days after issuing the letter of acceptance or within 21 days

after receiving documents in accordance with sub-clause 4.2 (Performance

Security) and subclause 14.2 (Advance payment). We noted that the Employer

paid the Advance Mobilization of US$ 3,087,283.02 and GH¢ 1,936,739.55 to the

contractor on 15 and 16 April 2013 respectively. This was about six months after

the acceptance letter but two weeks before the project commenced.

170. The Employer shall pay the amount certified in each interim payment

certificate (IPC) within 56 days after the engineer receives the statement and


supporting documents. Also, Sub-Clause 14.8 (a and b) of the General Conditions

of contract stipulates that if the contractor does not receive payment in accordance

with sub clause 14.7 (payment), the contractor shall be entitled to receiving

financing charges compounded monthly on the amount unpaid during the period

of delay. The charges are to be calculated at an annual rate of three percentage

points above the discount rate of the central bank in the country of the currency

of payment and shall be paid in such currency. Regular payments of IPCs on time

ensures adequate cashflow available to the contractor in order for him to meet his

costs

171. We noted that between September 2013 and March 2019, 34 interim

payment certificates amounting to GH¢ 35,384,433.54 and US$ 26,054,962.91 were

raised and certified by the Resident Engineer. At the time of the audit, 27 IPCs

amounting to GH¢ 31,383,514.15 and US$ 23,543,992.37 had been honoured by the

Ministry of Roads and Highways. All payment certificates had exceeded the 56

days payment deadline as stipulated in Sub-Clause 14.7 (b) of the General

Conditions of Contract. These delayed IPCs attracted interest on delayed payment

which amounted to GH¢ 859,380.24 and US$ 79,024.10. The contractor made

claims for the interest amounts through IPCs 7A,14A,19A, 22A and 24A. Details

of the IPCs raised is attached as Table 29 in Appendix 9.

172. Our analysis of the trail of IPC 2 to IPC 27 which had been paid shown in

Table 18 indicates that it took between 17 to 173 days for the IPCs to move from

the site to the Director of Finance at GHA before being forwarded to the Ministry

of Roads and Highways for payment.


Table 18: Analyses of delays beyond 56 days

IPC No.

Processing time, days

Delay due to processing, days

Delay due to non-payment, days

Total Delay, days

GH¢ USD GH¢ USD

2 `31 0 32 32 32 32

3 51 0 38 36 38 36

4 17 0 86 98 86 98

5 78 22 14 17 36 39

6 75 19 42 23 61 42

7 124 68 41 51 109 119

8 107 51 8 12 59 63

9 93 37 36 90 73 127

10 69 13 35 54 48 67

11 70 14 48 43 62 57

12 69 13 29 47 42 60

13 79 23 58 66 81 89

14 47 0 83 84 83 84

15 112 56 22 107 78 163

16 89 33 22 22 55 55

17 81 25 - 102 - 127

18 117 61 - 61 - 122

19 100 44 - 99 - 143

20 83 27 - 124 - 151

21 117 61 - 50 - 111

22 117 61 - 48 - 109

23 96 40 17 17 57 57

24 131 75 166 71 241 146

25 173 117 44 44 161 161

26 115 59 31 31 90 90

27 76 20 11 11 31 31

Source: Audit review of IPCs 2 to 27

173. We noted that the delays in payment of IPCs for works were between 31

and 241 days. The Ministry of Roads and Highways stated that it had no control

over the delays since by the time the IPC got to the Ministry, the 56 days had

already elapsed. The delay in payment experienced at the Ministry was due to the

internal certification of the amount to be paid as the IPC had to be sent to the

World Bank desk at Ministry of Finance and back to the Ministry of Roads and

highways.


174. We noted the delays in processing IPCs at GHA was due to lack of

institutional policies on how long IPCs should stay at each processing point before

the stipulated 56 elapses resulting in undue delays in processing the IPCs for

payment. The delays at the Ministry were due to the World Banks procedurals on

payment and replenishment of funds since all World Bank funded road projects

were paid from a single source.


175. Section 7 Sub-clause 8.2 of the General Conditions of Contract requires the

Contractor to complete all works stated in the contract, including passing of tests

as required for the purpose of Taking-Over, within the Time for Completion.

176. We noted that the project commenced on 2nd May 2013 and was scheduled

for completion on 1 May 2015 (24 months). On 20 January 2015, GHA granted the

contractor four (4) months extension of time from 1 May 2015 to 31 August 2015

due to earthwork quantities in a Variation Order No1. On 30 April 2015, the

Contractor again requested extension of time of 15 months to complete the project

citing the following reasons;

Actual quantities of works on site are beyond the BoQ quantities (from

7000m3 to 401,229m3

Unpaid compensation area of about 3.2km (10 communities) doted along

the project corridor hindering their complete access to site.

177. However, GHA granted the Resident Engineer a provisional approval of 6

months extension of time for the contractor to implement the works. This approval

was based on condition that MRH gives the contractor possession of the 3.2km

and ‘No Objection’ from the World Bank. The tentative revised completion date

was 28 February 2016. To mitigate further delay caused by lack of possession of

site at the 10 communities, GHA requested the contractor to pay for the

compensation of critical areas for reimbursement subsequently under the contract,


and the contractor obliged. We noted that an official approval of extension of time

had not been granted by the Ministry and the World Bank.

178. On 5 April 2017, GHA wrote to the Ministry recommending a 24-month

extension of time effective from 1 May 2015 to 1 June 2017 to enable the contractor

complete the works. This was as a result of delayed payment of compensation to

the project affected persons by the Ministry. The contractor requested for

extension of time to complete works remaining at Nkutumso which had delayed

due to compensation issues. GHA granted three (3) months extension from 30

September 2017 to 30 December to 2017. On 24 October 2017, the CEO of GHA

approved the request for extension of time.

179. As a result of the extension of time, the project was delayed for 36 months

denying the beneficiaries on that corridor easy access from one community to

another.


180. Section 8 of the General Conditions of Contract provides both standard and

special specifications which the Contractor is to adhere to. Section 2 of the

Specifications spells out the tests on materials and the required level of

workmanship required for the project. The tests include but not limited to:

Grading,

Compaction,

Concrete tests, and

Asphalt tests

181. The Specification for concrete works for drains and pipe culverts for

Ayamfuri-New Obuase project was C20/25. That of box culverts and bridges was

C25/30. For the road, the carriageway width was 7.3 m and shoulder width were

2.5 m in each direction. The structure of the pavement for the road was 550mm


made up of 40 mm Wearing course, 60mm Binder course, 300mm base and 150mm

sub-base.

182. The audit team inspected the works carried out by the contractor and

measured the length of the road, width of the carriageway and dimensions of

culverts. We also took Schmidt hammer readings of concrete structures. The team

extracted 20 asphalt core samples and measured the combined thicknesses of the

binder and wearing course. These measurements were taken in order to compare

our readings with the contract specifications and to note any deviations. Our

observations from the field inspection is shown in Tables 19 and 20 and Figure 3.

Table 19: Ayamfuri-New Obuase Project Schmidt Hammer Readings

Location of

Structure

(Chainage in

kilometers (km))

Type of

Structure

Schmidt Hammer

Reading (N/mm2)

Specified

Strength

(N/mm2)

Remarks

2 + 600 LHS Trapezoidal

drain

26 25 Met

specification

2 + 600 RHS Trapezoidal

drain

15 25 Did not

meet

specification

19 + 500 LHS

(Wing Wall)

Pipe Culvert 38 25 Met

specification

19 + 500 RHS

(Wing Wall)

Pipe Culvert 48 25 Met

specification



Table 20: Ayamfuri-New Obuase Project road measurements

Chainage

in

kilometers

(km)

Width of

Road, as

measured

by audit

team in

meters

Width of

road as

specified

in

Contract

in meters

Width of

Shoulder

as

measured

in meters

(LHS)

Width of

Shoulder

as

measured

in meters

(RHS)

Specified

shoulder

Width on

both

sides in

meters

Remarks

1 + 300 7.20 7.3 2.65 2.80 2.5 Road

width did

not meet

specified

width

2 + 600 6.80 7.3 2.66 2.95 2.5 Road

width did

not meet

specified

width

3 + 900 7.20 7.3 2.53 3.17 2.5 Road

width did

not meet

specified

width

5 + 200 7.05 7.3 2.55 2.55 2.5 Road

width did

not meet

specified

width

6 + 500 7.20 7.3 2.60 2.45 2.5 Road

width did

not meet

specified

width

7 + 800 6.90 7.3 2.60 2.80 2.5 Road

width did

not meet

specified

width

9 + 100 7.18 7.3 2.65 2.62 2.5 Road

width did

not meet


specified

width

10 + 400 7.08 7.3 2.50 2.87 2.5 Road

width did

not meet

specified

width

11 + 700 7.18 7.3 2.50 2.82 2.5 Road

width did

not meet

specified

width

13 + 00 7.21 7.3 2.28 2.71 2.5 Road

width did

not meet

specified

width

14 + 300 6.90 7.3 2.60 3.00 2.5 Road

width did

not meet

specified

width

15 + 600 7.27 7.3 2.75 2.68 2.5 Road

width did

not meet

specified

width

16 + 900 7.00 7.3 2.69 2.71 2.5 Road

width did

not meet

specified

width

18 + 200 7.14 7.3 2.84 2.62 2.5 Road

width did

not meet

specified

width

19 + 500 6.93 7.3 2.71 2.91 2.5 Road

width did

not meet


specified

width

20 + 800 6.95 7.3 3.23 2.57 2.5 Road

width did

not meet

specified

width

22 + 100 7.09 7.3 2.73 2.68 2.5 Road

width did

not meet

specified

width

23 + 400 7.16 7.3 2.84 2.60 2.5 Road

width did

not meet

specified

width

24 + 700 6.70 7.3 2.90 3.00 2.5 Road

width did

not meet

specified

width

26 + 00 6.95 7.3 2.82 2.93 2.5 Road

width did

not meet

specified

width

Source: Audit Field Inspection Results April 2019


Figure 3: Graph of asphalt core thickness measurements

Source: Audit Field Inspection measurements (April 2019)

183. Our analysis of figure 3, shows that eight readings of the cored samples

were above the specified thickness of 100mm (red dotted line) which meant that

the core thicknesses met the specifications while the 12 readings below the red

dotted line did not meet the thickness specifications. We noted that the thickness

of the sample taken at Chainage 20+800km was 55mm instead of 100mm,

indicating a significant deviation from the specification. Our analysis of data

collected during field inspection (Tables 19 and 20 and Figure 3) indicates that the

Consultant and GHA did not ensure that 60% of the thickness of sampled cores

met the specifications. Our observations cast doubt on the quality of the test results

submitted which indicated that the works had met the specifications in the

contract.

118120

100

109

100

118

123

105

85

74

98

85

80

96

85 85

80

55

85

98

1 +300

2 +600

3 +900

5 +200

6 +500

7 +800

9 +100

10 +400

11 +700

13 +00

14 +300

15 +600

16 +900

18 +200

19 +500

20 +800

22 +100

23 +400

24 +700

26 +00

Th

ick

nes

s o

f co

re, m

m

Chainage 0 - 26 + 00 km

Measured thickness of core samples at various chainages

Passed Failed 100 mm thickness


184. The samples were taken to the laboratory for testing to determine whether

the constituents of the asphalt concrete met specifications. The samples were

tested for the bulk density, air voids, bulk specific gravity, bitumen content and

grading. The laboratory results obtained are shown in Table 21. The laboratory

test results obtained indicated that the air voids in the samples taken were above

8%. According to the Audit Service’s Consultant “The average air voids of 8.385%

recorded for the Ayamfuri New Obuasi road is on the high side. An approximate

“rule-of-thumb” is for every 1 percent increase in air voids (above 6-7 percent),

about 10 percent of the pavement life may be lost”. Going by this interpretation,

the Ayanfuri New Obuasi road with 8.385% of air voids will deteriorate faster than

expected.

Table 21: Laboratory test results obtained for the Ayamfuri – New Obuase road project

No. Average

Bulk

density

(gm/ml)

Average

Air

Voids

(%)

Bulk

Specific

Gravity

(gm/ml)

Asphalt

Bitumen

Content

(%)

Grading Average

Core

thickness

(mm)

Specifications

(Wearing

course)

3 - 5 4.5 – 5.5 40mm

Wearing

course batch 1

2.211 8.385 2.413 5.2 100% Within

Specification

41.285

Wearing

course batch 2

2.211 8.385 2.413 5.4 100% Within

Specification

Specifications

(Binder

course)

3 - 5 4.5 – 5.5 60mm

Binder course

batch 1

2.25 8.465 2.458 4.6 100% Within

Specification

52.485 Binder course

batch 2

2.25 8.465 2.458 4.7 100% Within

Specification

Source: Audit Service Consultant’s interpretation of laboratory test results on asphalt

core samples


185. We also noted that quality specifications for the specific components of

asphalt were made with minimum and maximum limits for grading of aggregates.

These are industry standards. However, our analysis of the graph from the

Laboratory test results show that although the readings show 100% within

specification, the contractors are 90% of the time gravitating towards the lower

minimum limits. (See appendix 4)

186. We noted from our site inspections that sections of the road had begun to

show signs of deterioration as at the time of the audit inspection in April 2019.

Pictures 30 to 33 show signs of degradation of sections of the Ayamfuri-New

Obuase road project.

Picture 30: Early degradation of a section

of the Ayamfuri- New Obuase project

Picture 31: Early degradation of a section

of the Ayamfuri- New Obuase project


Picture 32: Early degradation of a section of the

Ayamfuri- New Obuase project

Picture 33: Early degradation of a section of the

Ayamfuri- New Obuase project

Source: Audit Field Inspection on 15 April 2019

3.4.3 Implementation of the Bolgatanga-Bawku-Polimakom Road Project


187. The scope of the Bolgatanga-Bawku-Polimakom Road Project was to

construct a 102.55km road with 3 bridges located at km 1+800 (Zuarungu), km

30+800 (Tilli) and km 61+700 (Zebilla). The road project is divided into 14 lots.

188. From review of progress reports and correspondence, we noted that the

road comprised 3km of asphalt concrete and the remaining 99.55km being double

surface dressing. Messrs Queiroz Galvao Construction Limited was to construct

the 2km dual carriageway asphalt road of width 14.6m from Bolgatanga and 1km

single carriageway asphalt in Zebilla Township. The double surface dressed

section of the road is a single carriageway with a width of 7.3m. In addition to the

road, the contractor was to construct 180 No. Pipe Culverts, 7 No. Box Culverts, 3

Toll plazas and 2 No. axle weighing stations along the road corridor.


189. At the time of the audit field inspection in May 2019, construction work had

stalled from October 2018 and actual physical progress was 19.45% instead of a

planned progress of 68.84%. The team noted that there were no scope changes to

the project.

3.4.3.2 Cost management (Payment for works )

190. Sub Clause 14.7 (a and b) of the General Conditions of contract stipulates

that the Employer shall pay the contractor the first instalment of the advance

payment within 42 days after issuing the letter of acceptance or within 21 days

after receiving documents in accordance with sub-clause 4.2 (Performance

Security) and subclause 14.2 (Advance payment). The Employer shall pay the

amount certified in each interim payment certificate within 56 days after the

engineer receives the statement and supporting documents. Regular payments of

IPCs on time ensures adequate cashflow available to the contractor in order for

him to meet his costs.

191. Also, Sub Clause 14.8 (a and b) of the General Conditions of contract

stipulates that if the contractor does not receive payment in accordance with sub

clause 14.7 (payment), the contractor shall be entitled to receiving financing

charges compounded monthly on the amount unpaid during the period of delay.

The charges are to be calculated at an annual rate of three percentage points above

the discount rate of the central bank in the country of the currency of payment and

shall be paid in such currency.

192. We noted from monthly progress reports and correspondence that Ghana

Highway Authority (GHA) after issuing an acceptance letter to the contractor,

Queiroz Galvao on 26 August 2016, paid the contractor an advance mobilisation

of GH¢ 91,911,576.70 on 11 September 2016. This was within the 42 days as

stipulated in the General Conditions of Contract.


193. We noted that between January 2017 and July 2019, 12 Interim Payment

Certificates (IPCs) amounting to GH¢ 122,627,434.02 were certified by the Resident

Engineer. IPC’s 2, 3, 7 and part of IPC 4 amounting to GH¢ 40,612,195.25 had been

paid and the rest are outstanding. We further noted that all the 12 certificates had

exceeded the 56 days payment deadline as stipulated in Sub Clause 14.7 (b) of the

General Conditions of Contract as shown in Table 22.

Table 22: Detailed of Payment to Contractor as at 31 July 2019

Source: Progress Report No. 23 and Correspondence from Queiroz Galvao

194. From Table 22, the contractor raised claims for interest on delayed payment

amounting to GH¢ 38,189,353.65 as per Sub Clause 14.8 of the General Conditions

of contract. This was an additional cost to the project, representing 31.28% of the

value of the certificates raised which has not yet been paid.

195. We analysed the trail of IPCs from the site to GHA to determine the time it

took to process the certificates before payment. We noted that the processing of

IPC No. Amount Certified (GH¢)

Days of Delay

Amount Outstanding

(GH¢)

Interest on Delayed

Payment (GH¢)

IPC 2 16,330,915.03 208

0.00 3,444,352.42

316

IPC 3 9,848,202.21 101

0.00 808,939.05

179

IPC 4 10,534,568.06

250

4,718,022.32

4,537,617.31 614

809

IPC 5 12,686,939.30 783 12,686,939.30 7,141,876.72

IPC 6 8,586,534.89 748 8,586,534.89 4,523,584.04

IPC 7 8,616,532.18 253 0.00 1,468,766.22

IPC 8 6,702,896.10 694 6,702,896.10 3,171,940.82

IPC 9 7,821,645.55 658 7,821,645.55 3,485,855.56

IPC 10 9,812,058.56 630 9,812,058.56 4,069,365.59

IPC 11 14,930,670.88 574 14,930,670.88 5,447,589.05

IPC 12 8,950,528.30 498 8,950,528.30 2,708,909.01

IPC 13 7,805,943.08 357 7,805,943.08 1,633,849.33

Total 122,627,434.02 82,015,238.78 38,189,353.65


the IPC starts from site where the RE vets and validates the contractor’s claims.

The Regional Coordinating Council (RCC) endorsed the IPCs and forwarded it to

GHA head office for final scrutiny before payments were made to the Contractor.

The actual examination of the IPC is done by the RE on site and crosschecked at

GHA head office.

196. We examined the endorsement dates on IPCs 2 to 13 (excluding IPC 11) and

found that it took between 70 and 111 days for the IPCs to move from the Resident

Engineer to Ministry of Roads and Highways for payment. According to

management of GHA, there are instances (in the case of IPCs 4,6,8,9,12 and 13)

where the 56 days stipulated in clause 14.7 elapse before the IPCs gets to GHA

head office. We noted that GHA did not have institutional policies on how long

IPCs should stay at each processing point before the stipulated 56 elapses resulting

in undue delays in processing the IPCs for payment. The details of the delays

beyond 56 days is presented in Table 23.

197. Based on the information in Table 23, delays in honouring certificates

beyond the stipulated time resulted in Contractors applying the clause on delayed

payment thereby needlessly increasing the project cost. In the given instance, if

the Contractor were to further apply Clause 14.7 (b) of the General Conditions of

Contract, Government of Ghana will pay an interest amount in excess of GH¢

38,189,353.65 in respect of IPCs that were outstanding per our calculation as at

time of the audit (July 2019).


Table 23: Details of delays beyond 56 days

IPC No.

No. of days spent

Total No. of days used

for processing

(P=a+b+c+e)

Delay beyond 56 days

Resident Engineer

(a)

GHA Regional Director

(b)

Regional Coordinati

ng Council (c)

GHA (e)

Delay due to processing (D=P-56)

Delay due to non-payment (X) as at the time of audit

Total delay (D+X)

2 33 1 9 27 70 14 194 208

302 316

3 21 0 24 37 82 26 75 101

153 179

4 11 9 54 22 96

40 210 250

574 614

769 809

5 16 4 28 22 70 14 769 783

6 20 0 58 20 98 42 702 748

7 8 14 34 21 77 21 228 253

8 13 11 42 21 87 31 663 694

9 14 20 36 19 89 33 625 658

10 20 8 26 30 84 28 602 630

12 44 5 37 25 111 55 443 498

13 21 8 29 40 98 42 315 357

Source: Audit Team review of IPCs 2 to 13

198. From our review of releases to the Road Fund from the Ministry of Finance,

other statutory sources and corroborated through our interview with Road Fund

Coordinator the delay in payment of the IPCs were also due to inadequate inflows

to meet the value of certificates to be paid.

199. Consequently, the delays in payment observed contributed to a slowdown

in the contractor’s rate of work on the 12 April 2017 and a complete halt in the

construction on 8 November 2017.


200. According to the contract, the commencement date of the project was 4

December 2016 and the expected completion date was 4 June 2019 (30 calendar


months). We noted from correspondence and progress reports that on 12 April

2017, the contractor, Queiroz Galvao notified GHA of his intention to reduce the

rate of works due to delay in honouring Interim Payment Certificate (IPC) No. 2.

GHA acknowledged the contractor’s letter and his right under Sub-clause 16.1 of

the contract to reduce the rate of works on 12 May 2017. The contractor on 8

November 2017 wrote to inform GHA of his intention to suspend works due to

non-payment of IPCs 2,4,5,6,7,8,9 and 10. The contractor actually suspended

works on 30 November 2017. On 8 January 2018 GHA informed the Ministry of

Roads and Highways of the contractor’s suspension of the works, resulting in the

payment of the final instalment of IPC 2 on 18 January 2018. The contractor

resumed work on 12 March 2018 after the payment but at a slow pace.

201. We noted that IPC 7 and part of IPC 4 were subsequently settled by 18 April

2018 which enabled the contractor remain at work but at a reduced rate. The

contractor suspended the works for the second time on 8 October 2018 due to

several reminders to GHA about non-payment of the remaining IPCs. On 25

October 2018, GHA wrote to the Ministry of Roads and Highways to inform them

of the suspension of works by the contractor due to non-payment of the remaining

IPCs. As of 31 July 2019, 31 calendar months after the start of the project in

December 2016, physical progress of work reported by the Resident Engineer was

19.45% (one month after the expected completion date of the project).

202. As a result of the reduced rate of works and the complete suspension by the

contractor, the project which was supposed to be completed on 4 June 2019 was

less than 20% complete.



203. Section 8 of the General Conditions of Contract provides both standard and

special specifications which the Contractor is to adhere to. Section 2 of the

Specifications spells out the tests on materials and the level of workmanship

required for the project. The tests include but are not limited to:

Grading,

Compaction

Concrete tests, and

Asphalt tests

204. The Specification for concrete strength for drains and pipe culverts for the

Bolgatanga-Bawku- Polimakom Road Project was C20/257. For the road, the

carriageway width was 7.3 m and shoulder width were 2.0m in each direction.

205. The audit team inspected the works carried out by the contractor and

measured the length of the road and width of the carriageway/shoulders in the

presence of the Contractor’s and GHA’s representatives. We also took Schmidt

hammer readings of concrete structures. These measurements were taken in order

to compare our readings with the contract specifications and to note any

deviations. Our measurement and readings from the field inspection are shown in

Tables 24 and 25.

7


Table 24: Bolgatanga Bawku Polimakom

Location of Structure

(Chainage in km)

Type of

Structure

Schmidt

Hammer

Reading

(N/mm2)

Specified

Strength

(N/mm2)

Remarks

33 + 052 (Head Wall) Pipe Culvert 38 25 Met Specification

34 + 844 (Wing Wall) Pipe Culvert 34 25 Met Specification

62 + 260 U-Drain 34 25 Met Specification

74 + 132 (Head Wall) Pipe Culvert 34 25 Met Specification


Table 25: Bolgatanga Bawku Polimakom

Chainage

in km

Width of

Road, as

measured

by audit

team in

meters

Width of

road as

specified

in

Contract

in

meters

Width of

Shoulder

as

measured

in meters

(LHS)

Width of

Shoulder

as

measured

in meters

(RHS)

Specified

shoulder

Width on

both

sides in

meters

Remarks

30 + 700 7.5 7.3 2 2 2 Met Specification







74 + 175 7.7 7.3 2.2 2.2 2 Met Specification


206. Our analysis of data collected during field inspection showed that the

Consultant ensured Queiroz Galvao adhered to the specifications in the contract.

We reviewed quality assurance results and found that the consultant ensured that

the contractor followed the quality control and quality assurance standards. We


also reviewed test results for concrete structures which indicated that the strength

specifications had been met for the works done so far. However, we noted that

due to the suspension of works, the embankments along the road were being

eroded since they had not yet been stone-pitched as shown in Picture 35. Pictures

34 to 37 show the state of the eroded road embankments which will have to be

redone again at a cost to the tax payer.

Picture 34: Stone pitched erosion

protection of embankment

Picture 35: deteriorated embankment of

road due to erosion



road due to erosion


road due to erosion

Conclusion

207. The Tetteh Quarshie –Madina road project was largely constructed to the

required contract specification with minimal deviations in the width of walkways

and observed defects probably contributed to by the fact that the affected section

of the road was taken-over in May 2009. This indicated that application of quality

control measures were relatively adequate. The implementation process was

however bedevilled by problems of poor management of scope, schedule, cost and

payment which resulted in significant cost and time overruns.

208. The scope of the works was changed by significant differences between

estimated quantities and implemented quantities; removal and reintroductions of

essential items; and inclusion of additional works that were not related to the

project. The total cost of variations resulted in a 133% and 93% increases

respectively to the Cedi and US Dollar components of the contract sum. Also, the

implementation stage was excessively prolonged by untimely issuing of design

drawings, obstructions by existing utility lines, and persistent delays in honouring

payment certificates. All these were largely consequences of poor planning i.e.

lack of adequate feasibility studies, design drawings and cost planning and


estimation. The total amount spent on the project at completion was GH¢

170,477,493.66 and US$ 49, 974,242.82 i.e. 624% and 187% respectively of the Cedi

and US Dollar components to the contract sum with the possibility of further

payments due to costs of Extension of Time which is yet to be claimed. The

numerous implementation problems also delayed the project by over 10 years.

209. The Ayamfuri-New Obuase road project was not completed on schedule

due to variations brought about by unknown site conditions which should have

been determined during the feasibility and design stage in order to inform the

project estimation. We are of the opinion that the cost overruns which occurred

were due to the variations which were unbudgeted and unforeseen in the

planning stage, compensation of project affected persons, relocation of utilities

and claims for delay in payments. The delay in completion was partly due to delay

in relocation of project affected persons and utilities as well as changes in the

design due to road safety concerns observed during implementation. The

thicknesses of the asphalt and the road widths measurements which did not meet

specification were due to failure of the project supervisors to institute thorough

quality control during asphalt works on the project which will impact on the

expected lifespan of the road.

210. The Bolgatanga-Bawku-Polimakom road project has not been completed

due to GHA’s inability to ensure that IPC’s were honoured on time by the Road

Fund Secretariat. The works on the road corridor has stalled and the project which

was supposed to have been completed in June 2019 is 19.45% complete thereby

denying users of the benefits thereof. The delay in payment of IPCs as at June 2019

has also led to interest charges thereby increasing the cost of the project. We are of

the opinion that, since the time of completing the project has elapsed, there is

going to be an extension of time to complete the project which will also be

associated with extra cost.


Recommendations

211. Analysis of data made available to us show that challenges exist during

implementation of road projects in the country that has to be addressed. The

challenges are in the areas of scope management, payments for work done and

ensuring projects are completed within schedule to get the full benefit for users.

212. To ensure proper implementation of current and future road projects, we

recommend that GHA should;

viii. have complete drawings and designs that inform cost estimates and

clearly define the scope of works of all projects,

ix. desist from the practice of removing needed work items in order to meet

budget ceilings only to reintroduce them during implementation,

x. Fulfil all relevant conditions of relocation and compensation precedent to

project commencement, and introduce cut off time to accept payment of

compensation to prevent residents taking advantage to relocate on site

earmark for road works.

xi. Treat additional works unrelated to ongoing projects not as variations and

should be subjected to separate procurement processes

xii. Ensure that it seeks and obtains approval for all variations,

xiii. Identify at an early stage the source of funding and possibly ring fence

such funds to meet all projected costs during implementation.

xiv. immediately institute and implement a policy on processing and payment

of IPCs within 56 days and sanction officers who delay each IPC with cost

of claims due to the delayed IPC,


xv. Draw and implement a maintenance schedules to prolong the project life

after they have been handed over after construction,

xvi. Take steps to construct the embankments of portions of the Bolgatanga-

Bawku-Polimakom road to prevent it from further deterioration so as not

to incur additional cost to the state.


3.5 COMPLETION AND DOCUMENTATION

3.5.1 Completion

213. Under Clause 48 of the General Conditions of the Contract, the Engineer

(GHA) is to issue a Taking - Over Certificate in respect of the whole or any

substantial part of the works that has been completed and has passed the required

tests, when the Engineer deems the works or any part of it to be substantially

completed and ready for use. In line with industry best practice, we expect GHA

to carry out take – over inspection, and ensure the contractor provides as-built

drawings and maintenance manuals (for Traffic Lights).

214. For the Tetteh Quarshie-Madina Project, we noted from project

correspondence that based on a request from the Minister of Roads and Highways,

the contractor completed section Ch. 1 + 025 to Ch. 3 + 000 to ease traffic

congestion in that section of the road. A team from GHA carried out take-over

inspection and prepared a snag list of defects which the contractor rectified. GHA

issued a Sectional Taking-Over Certificate for Ch. 1 + 025 to Ch. 3 + 000 on 23 May

2009. Following similar procedures, GHA took over the remaining portions of the

works and issued a Taking-Over Certificate on 13 February 2019, approximately

10 years from the first taking over. GHA obtained full set as-built drawings from

the contractor in electronic format.

215. For the Ayamfuri-New Obuase Road Project we noted that the Contractor

wrote to GHA for inspection of the works at substantial completion on 5th August

2017. The Resident Engineer inspected the road works and presented a pre-taking

over snag list to the contractor on 1 February 2018 for implementation. The snag-

list contained 130 defects observed and comments by the RE which the Contractor

was to rectify prior to the taking over inspection. The Resident Engineer Informed

the Chief Executive of GHA of the substantial completion inspection of the project

to take place on the 29 May 2018.


216. GHA formed an inspection team comprising officers from GHA head

office(seven), Project Supervision Team(nine) and the Contractors staff (4) to

inspect the works on the 28 May 2018. The inspection team made 18 observations

of defects on the road project for which GHA instructed the contractor to rectify.

217. A subsequent inspection was carried out on 17 August 2018 at which the

inspection team agreed that the activities the contractor was instructed to carry

out had been effected. This inspection was done in in the presence of;

Road Highway Director (C/R)

Resident Engineer

Materials Manager

Project Surveyor

Technical Officer Materials

Technical Officer, Survey

Secretary

CJIC Quantity Surveyor

218. Hence in accordance with Sub-clause 10.1 of the conditions of contract,

GHA issued the taking over certificate for the works in a letter dated 14 September

2018. The certificate was signed by the Deputy Chief Executive Development for

the Chief Executive. The project was in defects liability period at the time of the

audit inspection in April 2019.

3.5.1 Documentation

219. Filing and maintenance of documents was not complete and was difficult

to have a complete trail of the progress of the project. For example there were no

pre-qualification documents, copies of submitted tenders and evaluation reports

in the project files for us to review. Also, there was no segregation of documents

as different categories of documents were mixed in the project files. There were


missing variation orders, IPCs, minutes of site meetings and progress reports. This

problem makes project tracking and administration difficult as information for

management decisions was not kept in a systematic way.

3.6 OVERALL CONCLUSION

220. Following our review of the selected projects information, we are of the

opinion that projects planning need to be improved to ensure value for money.

The Survey and Design Unit of the GHA need to be supported to compile data on

the roads in the country to aid planning and review. The summary in Tables 26

shows the extent of cost and time wasted for which implementation of our

recommendation seek to address.

Table 26: Summary of project issues

Tetteh Quarshie – Madina Road Project

Contract sum GH¢ 23,558,960.95 US$ 17,414,431.78

Final cost (as at 30 June 2019) GH¢ 170,477,493.66 US$ 49,974,242.82

Projected completion time 30 months

Final completion time 147 months

Core Samples taken 10

Number passed 8

Variations (works related to

project)

GH¢ 23,654,047.83 USD 13,430,608.5

Variations (unrelated works) GH¢ 11,621,897.39 US$ 6,169,625.91

Fluctuations GH¢ 61,891,295.69 USD 5,240,469.41

Total interest on delayed

payment (Part of final contract

Sum)

GH¢ 18,998,533.10 US$ 560,842.11

Payment for extension of time GHC 32,605,057.14 US$ 7,575,794.56

Ayamfuri – New Obuase Road Project

Contract sum GH¢ 13,708,256.55 US$ 20,801,250.75.

Final cost (as at 30 June 2019) GH¢ 35,384,433.54 US$ 26,054,962.91


Final completion time 64 months

Core Samples taken 20

Number passed 8


Variations (Total V.O.s

approved)

GH¢ 22,573,895.05 US$ 10,543,792.05

Work unrelated to contract Not applicable


payment (Part of final contract

Sum)

GH¢ 859,380.24 US$ 79,024.10

Payment for extension of time Not applicable

Bolagatanga-Bawku-Polimakom Road Project

Contract sum GH¢ 612,743,844.64

Final cost (as at 31 July 2019) (214,539,010.71) Project not completed ongoing at

the time of the audit


Final completion time Project Not yet completed

Core Samples taken None

Number passed Not applicable

Work unrelated to contract Not applicable


payment(Part of final contract

Sum)

GH¢ 38,189,353.65 (cumulative and outstanding as

at 31/7/2019)

Payment for extension of time None

Source: Extracts from Audit findings

221. GHA’s strategic goal of cost effective road development in the country in

our opinion cannot be realised if delayed payment on certificates are not managed

to reduce interest which constitutes a significant portion of the final contract sums.


CHAPTER FOUR

Appendixes, Analysis Sheets & Some Supporting Document

Appendix 1. List of Documents reviewed

Contract Documents

Project Drawings

Correspondence

Monthly Progress reports

Minutes of site meetings

Interim payment certificates

2018 Annual Progress Report

2017 to 2037 Strategic Plan

Variation Orders

Ministry of Transportation Standard Specifications for road and bridge works (2007)


Appendix 2. List of interviewees

Acting Chief Executive

Deputy Chief Executive

o Development

o Administration

Directors

o Planning

o Survey and Design

o Quantity Surveying

o Contracts

o Materials

o Estate

Resident Engineers

o Tetteh Quarshie-Madina Road Project

o Ayamfuri-New Obuase Road Project

Other staff of GHA

Ministry of Roads and Highways

o Director (Finance)

o Deputy Director (Finance)

Road Fund Secretariat

o Coordinator

Ministry of Finance

Consultants

o Delin Consult


Chief Resident Engineer

Contractors’ Representatives

o Messrs Sonitra

Project Managers for

East Legon – Spintex Road Tunnel

Tetteh Quarshie - Madina Road Project


Appendix 3. Field inspection and methodology

CARRIAGEWAY

To ascertain existence of the road project and the status of completion

o Traverse the length of the road, ascertain start and finish point and

note the distance with the vehicle trip counter,

o note any defects on the surface of the road from start to finish and

record the locations and nature of defects.

o Observe the road safety features and measures instituted and

comment on their suitability or otherwise.

o Observe road signs and their location and comment on the quality

and adequacy.

o Observe any potential risk areas along the road that might be

susceptible to accidents.

Take measurements of the length, width and shoulders of the road with the

pedometer and compare with specifications and payments made.

Measurements were taken at intervals of 250m,500m, 1km, 2.5km and 5km

depending on the length of the road.

Inspect and count the number and types of culverts constructed and

compare with what was to be provided and paid for

o Determine culvert locations from project drawings and observe the

condition of the culvert with regards to whether the workmanship

was without defects, the culvert is performing its function and is not

silted

o Take measurements of dimensions (length, width, depth of the

culvert and compare with drawings (as-built)

o Take readings of strength of culverts and concrete drains with the

Schmidt hammer to compare with the strength required

o Changes in the road design implemented during construction.


CONCRETE TESTS

The Schmidt Hammer was used to test the strength of concrete structures. Nine

rebound values were taken at specific intervals of at least 5cm apart. Three

readings were taken for three rows of tests. The rebound values were recorded

on a data sheet.

The highest and lowest rebound readings were omitted and the average taken

of the remaining seven readings. The average value obtained was determined

from the rebound hammer strength computation graph. The average value

was read on the horizontal axis and the corresponding reading on the vertical

axis corresponded to the measured strength of the concrete component. The

measured strength obtained was compared with the strength specification to

determine whether it met the specification or not.

The Schmidt hammer tests were done on the internal walls of drains. For

culverts the headwall, wingwall and barrel.

ASPHALT

For the asphalt works, the audit team cored the road at intervals to collect

asphalt core samples. The core samples were taken at the centres, LHS and

RHS edges of the roads at intervals to obtain a minimum representative

sample in accordance with ASTM D979 and ASTM D5361.

The thicknesses of the asphalt cores were measured with a Vernier calliper

and recorded on the data collection sheet and compared with the specified

pavement thickness to observe any difference from the designed thickness.

The core samples were carefully stored in a containment box and taken to a

materials laboratory (GHA) to conduct tests to ascertain whether it met

specifications.

The laboratory test results were compared with the results of tests carried out

during construction.

The team cored the edges of the road to obtain samples of the pavement

thicknesses for the base and sub-base. The thickness of the cored base course

and sub-base sample were measured with a ruler and recorded on the data

recording sheet. The measurements were compared with the specified layer

thickness for the binder and wearing course.


Appendix 4. Laboratory test results of asphalt core samples

Grading curves for the Tetteh Quarshie Madina Road Project

Table 27: Grading curves for the Tetteh Quarhsie Madina Road Project (Wearing Course)

Source: Laboratory test results on extracted asphalt core samples dated 27 July 2009.


Table 28: Grading curves for the Tetteh Quarhsie Madina Road Project (Binder Course)



Table 29 Grading curves for the Ayamfuri-New Obuase Road Project (Wearing Course)



Table 30: Grading curves for the Ayamfuri-New Obuase Road Project (Binder Course)

Source: Laboratory test results on extracted asphalt core samples dated 27 July 2009


Appendix 5 Key players and their roles

Ministry of Road and Highways (MRH)

The Ministry of Roads and Highways (MRH) is responsible for formulating

policies for the road transport sector, establishing the regulatory framework for

road transport operations, investments and the development of an integrated road

transport system.

The Ministry of Roads and Highways (MRH) is the Employer or the Project Owner

and is represented by the Ghana Highway Authority acting for and on behalf of

the Government of Ghana. The responsibility of the ministry as employer is to pay

for projects being undertaken. MRH receives monthly progress report from GHA

on road projects and reports to Cabinet. The Ministry also approves IPCs before

they are submitted to MoFEP for payment.

Ministry of Finance and Economic Planning (MOFEP)

The Ministry of Finance and Economic Planning (MOFEP) provides the budget

for road projects. MOFEP also disburses funds to settle compensation of property

owners affected by the road construction and Interim Payment Certificates (IPCs)

submitted by GHA on behalf of contractors.

Ghana Highway Authority

The Ghana Highway Authority is under the Ministry of Roads and Highways and

is responsible for planning, developing and administering road projects.

The Chief Executive (CEO)

The CEO is the head of GHA and appoints the Resident Engineer. The CEO

approves changes suggested by the Resident Engineer. The CEO approves

subcontracting of any parts of the works, variation orders, and issues taking over

certificates. The CEO also reports on the status of road projects to the Ministry of

Roads and Highways.

The Development Department of GHA

The Deputy Chief Executive heads this department comprising Planning,

Contracts, Materials, Quantity Surveying, Bridges and Survey and Design

Divisions. The Planning Division conducts feasibility studies, identifies right of


way and buildings for demolition to make way for the road as well as assessing

properties for payment of compensation.

The Contracts Division prepares tender documents. The division also handles

tendering and tender evaluation, construction planning (including relocation of

utilities and compensation of affected properties) and reviewing IPCs.

The Materials Division is responsible for engineering studies and material

investigations. The division also prospects for materials for construction.

The Quantity Surveying Division is involved in the preparation of preliminary

cost estimates for projects. They also assist in the preparation of contract

documents and the verification of quantities on IPCs.

The Bridges Division is responsible for identifying locations and designing

bridges to be constructed.

The Survey and Design Division is responsible for gathering site information

through various surveys, designing the road to be constructed and preparing

engineering drawings for construction.

The Resident Engineer

The Resident Engineer receives contractor’s queries, issues instructions to the

contractor, ensures the contractor follows good practices and approves work done

by the contractor. The Resident Engineer also monitors progress of works and

gives the GHA Chief Executive regular reports on the project through a Monthly

Progress Report. He chairs monthly site meetings to discuss progress of work.

The Contractor

The Contractor is to execute the contract according to the drawings and

specifications. They maintain the project site, receive instructions from the

Resident Engineer and carries them out. They use sub-contractors and suppliers

of goods and services to carry out some aspects of the contract and apply

periodically for payment of work done. They conduct tests on materials and

components, and forward test results to the Resident Engineer for approval.


Appendix 6. Details of system description

Figure 4: System Description

Source: GAS Performance Audit Infrastructure Guide


Appendix 7. Details of Variation Orders on Tetteh Quarshie Madina Road

Project

Table 31 : Variation orders granted on the Tetteh Quarshie-Madina road project

Va

ria

tio

n

Ord

er N

o.

Brief Description

Value of Variations

%

of

Co

ntr

act

Su

m

Local (GHȼ) Foreign (US$)

1 ER’s Facilities 48,700.10 (52,891.26) 0.00

2 Some general items, site allowance, Ammonia printer cartridge & adjustment

52,465.19 - 0.13

2A Urban roads (Relocation) (412.88)

0.00

3 Relocation of damaged Telecom Plants along Tetteh Quarshie-Madina Road (Okponglo)

24,137.85 - 0.06

4 Construction of Fence walls for Ghana Standards Board and Gulf House

122,886.07

0.31

5 ER’s Facilities 59,846.31

0.15

6 Advance payment to the Subcontractor (Energy Ventures GH. Ltd) for the supply and installation of 33kV tower overhead line along Tetteh Quarshie to Madina

183,000.00 - 0.46

7 Relocation in front of Emmanuel Eye Clinic – Subcontractor M/S Zigma Engineering Company Ltd

7,045.00

0.02

8 Relocation of Medium Voltage Pylons 89,707.82

0.23

9 Part Compensation payment for buildings/structures and crops affected by the project

68,681.28 - 0.17

10 Settlement of bill for relocation of underground cable near sub-station opposite Total Filling Station

4,310.26

0.01

11 Emergency Works to Improve Traffic Flow on Spintex Road 4,371,386.29

11.04

12 Rent for residential accommodation 4,392.00

0.01

13 Construction of Kasoa Toll Plaza 600,613.87 434,838.25 2.53

14 Atomic and Legon Interchange 10,155,162.53 7,495,466.19 66.34

15 Office Laptops and Car Maintenance 6,176.28

0.02

16 ER’s Facilities & Site allowance 184,170.59

0.47

17 General Item Part 1- Extension of Time 3,076,051.89 2,227,108.88 12.95

19 Survey Accessories 5,732.66

0.01

20 Variation to emergency works to improve traffic flow on Spintex road and the community 18 Abattoir road (Dept. of Urban Roads

6,649,897.23 5,734,787.66 30.13

21 Equipment in FDN Lab. GHA Entral Lab ElWalk - 12,648.91 0.03

22 Relocation of 265mm HPDE PN 10 (UG). 54,839.61

0.14

23 Relocation of Vodafone plant at Atomic Junction 63,194.05 - 0.16

24 Final Compensation Payment for buildings/structures affected by the project

308,607.55

0.78

25 Street Light & Traffic Lights), General Item For Extended Contract Period To May 2013, ER's Facilities To May 2013

5,150,793.90 338,787.87 13.80


VARIATION ORDER No.11 (27/03/2009) (Emergency Works to Improve Traffic Flow on Spintex Road)

Description Estimated Omissions (GHȼ) Estimated Additions (GHȼ)

Emergency Works to Improve Traffic Flow on Spintex Road

4,371,386.29

Estimated Net Addition 4,371,386.29

Item Description Total Cedi Equivalent GHȼ

1

ACCRA SHOPPING MALL Create an exclusive exit lane from the mall that will join the Spintex road

22,482.25

2 Additional lane on the SE loop onto the liberation road 34,931.91

3 2No. Lay byes to be created on the SE loop with a separator and a well-defined

17,635.95

4 Create a walkway on the SE loop by slabbing the open drain and raising it by

31,687.78

5 Create additional exit lane from Spintex roundabout onto Motorway

64,598.15

6

TETTEH QUARSHIE ROUNDABOUT-MADINA ROAD An additional lane to be added to the North-West loop on the interchange by asphalting

40,306.05

7

SPINTEX UNDERPASS Extend existing 2No 1.5 m pipe culverts on the Spintex road by 6 m on either side

9,648.65

8 Undertake widening of Spintex road/underpass junction to accommodate left turn

49,599.17

9

Widen Baatsona Junction and signalize Add the following Provsional items

Provide an additional box culvert under the motorway to segregate movement and reduce

174,357.11

650,000.00

10 Signalized the Junction and link with Boundary Road 60,000.00

11

Spintex Road (New Alignment) Re-program signal timings at Linkb/liberation road and Woolworth Pelican crossings

2,000.00

12

Community 18 and its environs Develop a right-out slip from the Motorway (near abbatoir) unto the community 18 road

678,576.80

13 Develop a righ-in slip onto the Motorway (near the abbatoir) from the community 18 Road

555,199.23

14 University of Ghana 207,588.67

Sub-Total (A) 2,598,612.71

Specified Provisional sums (B)

Total of Bill less specified provisional sums (A-B) = (C)

Add: Contingency (D) {Physical: 10% of (C) **{Price 60% of (C) “ 259,861.27 1,559,167.62

Grand total (A+D) 4,417,641.60

Adjustment allowance, Add/Subtract (1.78% of 2,598,612.71) 46,255.31

Total to form of bid 4,371,386.29

Note ** Fluctuation on the project currently stand @ 1.6


Variation Order No.20 Variation to emergency works to improve traffic flow on Spintex road and the community 18 & Abattoir road (Dept. of Urban roads)

Brief description Estimated Omissions Estimated Additions

Local Cedis US Dollars Local Cedis US Dollars

Omissions A. Emergency works to improve traffic flow on Spintex road (V.O.1)

23,423,108,282.67

141,118.50

Additions B. General items for emergency works

C. Community 18 bridge

D. A right-out slip from motorway unto COM. 18 bridge & right-in slip unto motorway from COM. 18 bridge

E. Variation to improve abattoir road to steel bridge

F. Variation to improve community 18 road (Asphalt overlay)

G. Variation to improve atomic junction to Rawlings Circle road (Asphalt overlay)

H. Variation to shopping mall, loops, Spintex

I. Method Related charges (18.34%)

Sub-Total Less

9,087,690,696.00

11,996,410,923.76

15,079,219,402.00

7,211,275,015.00

10,685,591,853.00

3,152,637,040.00

20,181,769,465.33

12,527,486,138.41

890,679.92

1,094,680.24

521,627,37

772,594.11

225,382.00

1,460,311.13

910,631.39

89,922,080,533.50

23,423,108,282.67

5,875,906.16

141,118.50

Estimated Net Additions 66,498,972,250.83 5,734,787.66


Appendix 8. Table of road widths, core thickness as measured on site and tests

on concrete structures

Tetteh Quarshie – Madina Road Project

Table 32: Measured thicknesses of core samples from the Tetteh Quarshie Madina Road

Core Sample No. Chainage Thickness of Core, mm

1 0 + 100 R 120

2 1 + 600 R 125

3 2 + 600 R 97

4 3 + 100 R 130

5 4 + 350 R 85

6 4 + 350 L 104

7 3 + 000 L 105

8 2 + 500 L 115

9 1 + 000 L 110

10 0 + 500 L 110

Source: Audit team field inspection results

Table 33: Summary Statistics on core samples from the Tetteh Quarshie Madina Road

Specified combined thicknesses of wearing and binder courses 100 mm

Criteria Count

>=100 8

<100 2

Total number of samples 10

Average thickness of asphalt core samples 110.1 mm

Maximum thickness of asphalt core samples 130 mm

Minimum thickness of asphalt core samples 85 mm



Table 34: Stratified Random Sampling on the Tetteh Quarshie Madina Road Project

km LHS RHS

4.5 1 2 3 4 5 6 7 8

4 48 47 46 45 44 43 91 92 93 94 95 96

3.5 37 38 39 40 41 42 90 89 88 87 86 85

3 36 35 34 33 32 31 79 80 81 82 83 84

2.5 25 26 27 28 29 30 78 77 76 75 74 73

2 24 23 22 21 20 19 67 68 69 70 71 72

1.5 13 14 15 16 17 18 66 65 64 63 62 61

1 12 11 10 9 8 7 55 56 57 58 59 60

0.5 1 2 3 4 5 6 49 50 51 52 53 54

0

Source: Audit team worksheet


Ayamfuri New Obuase Road Project

Table 35: Measured thicknesses of core samples from the Ayamfuri New Obuase Road

Lot 1

Sample Chainage (km)

Thickness of Core, mm

Width of shoulder LHS, m

Width of shoulder RHS, m

Width of Road, m

1 1 + 300 118 2.65 2.80 7.20

2 2 + 600 85 2.66 2.95 6.79

20 3 + 900 120 2.53 3.17 7.20

19 5 + 200 74 2.55 2.55 7.05

3 6 + 500 98 2.60 2.45 7.20

18 7 + 800 85 2.60 2.80 6.90

4 9 + 100 80 2.65 2.62 7.18

5 10 + 400 96 2.50 2.87 7.08

17 11 + 700 100 2.50 2.82 7.18

16 13 + 00 109 2.28 2.71 7.21

6 14 + 300 85 2.60 3.00 6.90

7 15 + 600 85 2.75 2.68 7.27

15 16 + 900 100 2.69 2.71 7.00

8 18 + 200 118 2.84 2.62 7.14

14 19 + 500 80 2.71 2.91 6.93

13 20 + 800 55 3.23 2.57 6.95

9 22 + 100 123 2.73 2.68 7.09

10 23 + 400 85 2.84 2.60 7.16

12 24 + 700 98 2.90 3.00 6.70

11 26 + 00 105 2.82 2.93 6.95


Table 36: Summary Statistics on core samples from the Ayamfuri New Obuase Road

Specified combined thicknesses of wearing and binder courses 100 mm

Criteria Count

>=100 8

<100 12

Total number of samples 20

Average thickness of asphalt core samples 95 mm

Maximum thickness of asphalt core samples 123 mm

Minimum thickness of asphalt core samples 55 mm


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Mission

Statement

The Ghana Audit Service exists

To promote

·

good governance in the areas of transparency,

accountability and probity in Ghana’s public financial

management system

By auditing

·

to recognized international standards and reporting

our audit results

And

· reporting to Parliament