The Construction sector chair for the Association of Ghana Industries (AGI), Rockson Dogbegah, has commended the Ministry for Works and Housing for initiating steps to revamp the outdated Bank for Housing and Construction.
This, according to him, will help in the reduction of some the challenges of finance within the housing and construction sector in the country.
The Minister for Works and Housing, Mr Samuel Atta-Akyea, recently said the reinstatement of the Bank for Housing and Construction would help tackle the housing deficit in the country by making it possible for both public and private sector workers to obtain realistic mortgage arrangements with relatively lower interest rates as compared to the commercial banks.
The move, he said, will provide some respite to Ghanaian workers to own their own houses long before they retire.
Mr Dogbegah pointed out unwillingness by most banks to extend credit facilities to government contractors as one of the biggest challenges that indigenous construction companies in Ghana.
According to him, this is because, as the major client, the government is barely able to meet set timelines for contract payments. He added that in most cases, the government is also unwilling to pay interest on the delayed payments.
Mr. Dofbegah further faulted local contractors for failing to enforce the conditions of contract that entitle them for compensation for fear of being ill-treated by their clients.
Mr Dogbegah commended the government’s plans to revive the Bank for Housing and Construction and emphasized the need for government to make funds for the projects available before commitment of the same.
He also advised that they should as well make the payment of interest on delayed payment as it was the case in other jurisdictions such as the UK, South Africa and Tanzania.
This, he says will be in bid to create a conducive environment for developing the construction sector in Ghana and to support the agenda of transformation of the country through the private sector.