Work on the long-delayed Takoradi Market Circle redevelopment project is expected to resume within a month, according to the contractor working on the project.
The development was disclosed during a site inspection by the Minister for Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, on Tuesday, September 22, 2026.
The Takoradi Market Circle project, which began about six years ago, is currently estimated to be 62 percent complete. The contractor has proposed extending Phase One of the project to accommodate the increasing demand for commercial space in Takoradi, the capital of Ghana’s Western Region.
€41.7 Million Already Committed
The government has so far committed approximately €41.7 million to the project. The amount covers part of the original €48 million contract value, as well as costs accumulated during periods when construction was suspended.
The contractor, Contracta Costruzioni Italia S.R.L., is seeking an additional six months to complete an expanded Phase One. The proposed extension would create 1,200 additional trading spaces, increasing the total capacity of the market to approximately 4,000 shops and trading spaces.
New Drainage System Proposed
Contracta is also seeking approval for a second variation to the project contract to construct a drainage system of approximately 1.5 kilometres.
The proposed drainage network would connect the market to the main receptacle at Mankessim White House. The contractor says the drainage works were not included in the original project scope but are important to address drainage concerns around the market.
Contracta Technical Director Reginald Longdon said resolving the drainage challenge remains important, although the project design has incorporated measures to reduce the potential impact.
Government Exploring New Financing Model
The project has faced financing difficulties following funding cuts from Italy’s export credit agency, SACE. The government is therefore exploring alternative financing arrangements to ensure the Takoradi Market Circle project can be completed.
Minister Mahama Ayariga said a new financing framework could potentially allow the market redevelopment project to be completed within a year.
According to the Minister, the government is considering an approach similar to the financing model used for the Kejetia Market project, where revenue generated from trading spaces could support the completion of the development.
The proposed arrangement would involve renting out the planned 4,000 trading spaces, with payments from prospective traders contributing towards the remaining construction costs.
Government is currently engaging the relevant authorities, including the Sekondi-Takoradi Development Authority (STDA), the responsible ministry and the contractor to finalise the financing arrangements.
1,200 More Trading Spaces Proposed
On the contractor’s request to expand Phase One, the Local Government Minister said the proposal was being considered.
The proposed addition of 1,200 trading spaces would increase the market’s capacity and provide more commercial opportunities for traders in Takoradi.
Suspension Costs Continue to Rise
The delay in settling the original €48 million contract sum has already resulted in approximately €18.9 million in suspension costs.
Government has so far paid about €7.13 million of the accumulated suspension costs. The amount could increase further if the proposed six-month extension is approved.
For displaced traders and residents affected by the prolonged construction, the immediate priority remains the completion and opening of the Takoradi Market Circle, which is expected to provide modern trading facilities and boost commercial activity in the Western Region.
Source: newsthemegh.com