About 150 workers employed by Contracta Construction UK Ltd. have lost their jobs following prolonged delays in the execution of three major infrastructure projects in Kumasi due to outstanding government payments.
The affected projects include the Kejetia Phase II Market redevelopment project, the Komfo Anokye Teaching Hospital (KATH) Maternity and Children’s Block, and the Prempeh I International Airport project, all of which have reportedly witnessed little to no activity for nearly two years.
According to the Public Relations and Community Liaison Consultant for Contracta Construction UK Ltd. in Kumasi, Emmanuel Danso, the company was compelled to reduce its workforce as financial pressures continue to mount amid delays in payments from government.
Speaking to journalists, Mr. Danso explained that engineers, technicians, artisans and labourers working across the various project sites were affected by the layoffs as management attempts to cut operational and administrative costs.
“Since May 2024, we have received only one payment. So, while negotiations with the government are ongoing, it has become necessary for us to reduce our staff strength in order to ease the financial and administrative burden on the company,” he stated.
He indicated that despite the difficult decision, the company ensured that all affected workers received compensation packages before being laid off.
Mr. Danso further disclosed that discussions are currently ongoing between government officials and the company’s directors in Accra in an effort to resolve the payment challenges and facilitate the resumption of work on the stalled projects.
“Discussions are still ongoing between government officials and our directors in Accra, and we are hopeful that very soon we will be able to return to site. However, at this point, we have no option but to lay off some workers. This is not a situation where they are being sent away empty-handed,” he added.
The latest development has intensified concerns among residents and stakeholders in Kumasi over the prolonged delays affecting some of the Ashanti Region’s most critical infrastructure projects.
The Kejetia Phase II redevelopment project was expected to expand trading space and improve conditions for thousands of traders in Kumasi’s central business district, while the KATH Maternity and Children’s Block project is considered vital to improving specialist healthcare delivery for women and children.
Similarly, the Prempeh I International Airport project is viewed as a key intervention aimed at boosting transportation, trade, tourism and economic activity within the Ashanti Region and beyond.
Economic observers warn that the continued suspension of work on the projects could negatively affect local businesses, employment opportunities and investor confidence in public infrastructure delivery.
The layoffs are also expected to place additional pressure on affected workers and their families at a time when many households are already grappling with economic difficulties and rising living costs.
Residents and business operators in Kumasi have meanwhile called on government and the contractors to expedite negotiations and ensure the early resumption of work to prevent further delays and economic losses.