Rescuing a Bankrupt Nation— Ghana‘s current economic mess, which can arguably be likened to bankruptcy, is partly attributable to the inefficiency in the management of projects. Ghana’s track record in the implementation of tangible projects such as dams, interchanges, and schools, as well as intangible ones such as Free SHS, has been terrible.
Almost 100% of all projects in the country experience some form of overruns. Government projects either suffer cost overruns or time overruns or both. Arguably, the excess funds that have been sunk into projects, if they had been curtailed, would have sustained the country’s economy from the near collapse in 2022. As a result, the country went to the International Monetary Fund (IMF) for the 18th time in its history with cup in arms seeking for support.
Some research works cited by the Honorary Vice President of IMANI Africa, Bright Simons reveals that 96% of all projects in the country record cost overruns. Simply put, 96% of all projects experience higher inflated costs by the completion stage or even midway through the process. Moreover, shockingly, 100% or all projects in the country are always behind schedule. Let’s take a look at some of them;
Project Overruns – Ghana’s Track Record
A very contemporary case is the new Bank of Ghana Headquarters. A project that was initially estimated to cost $82 million is now costing $250 million. Here is the shocker, the project is still not complete.
The National Cathedral is also a classic case. A project that started with $100 million estimated cost, along the line, per officials of the project, changed to $200 million, then to $300 million. Finally, the contractor of the project, Rizzani de Eccher revealed the total contract cost is $400 million. As of now, $58 million, representing about 15% of the entire contract cost has been spent. But what does the country have? A very big hole. And here is another shocker, a very comprehensive analysis by Bright Simons reveals the project could cost the country a whopping $1.2 billion at completion.
You cannot leave out the “mess” of the Pwalugu Dam, which was conceived in the 1960s, in this conversation. The cost has consistently changed after every feasibility study over the years, to hit about $993 million. Already about $100 million has been spent, but nothing that resembles a dam can be found at the site.
The Saltpond Decommission project is also legendary in this conversation. The initial contract awarded in 2022 cost $96 million to decommission the rig that brought in only about $10 million revenue. By 2024, $89 million of the contract sum had been spent but nothing significant had been done and the structure still remains. Operations are currently suspended as the contractor is demanding an additional $81.11, bringing the total cost to decommission to $200 million to complete the job.
You can confirm yourself that there are numerous state projects dotted across the country that have either been stalled or totally abandoned after taxpayers’ funds were pumped into such projects. These projects embody massive state funds that have gone down the drain even including those completed.
Where do Project Managers and Policy Analysts Stand in All These?
Bright Simons has made a very strong case about how a collaboration between project managers and policy analysts can save the country from throwing away state funds in bizarre projects. He partly attributes the situation in the country to the inadequate or lack of collaboration between project management professionals and policy analysts in the space.
Bright Simons, who was speaking at the Project Management Institute Ghana (PMI-Ghana) February Chapter Meeting on the topic “Can Project Managers & Policy Analysts jointly save Ghana from bankruptcy?” maintained that merging the expertise of the two professionals creates a powerful synergy for project success.
A strategic collaboration of the two professionals on a project, he says, could significantly mitigate these inefficiencies experienced in planning, execution, and evaluation of national projects.
Project Managers’ Role
He explains that the project manager brings expertise in the areas of project planning, comprehensive cost estimates, risk management, scheduling, stakeholder coordination, project specification and configuration.
They also play a very critical role in logistics management and cost controls.
However, there are certain policy issues related to projects that only policy analysts can identify and deal with to ensure the success of projects.
Policy Analysts’ Role
Policy analysts are able to determine whether projects align with economic, social, environmental and political realities. Policy Analysts through tools such as Cost-Benefit Analysis (CBA) are able to determine whether the project’s long-term benefits outweigh or justify its cost. While the project manager is concerned about the quantifiable output of the project, the policy analysts consider the impact or the outcomes of the project.
Some of the benefits of projects, Bright Simons says, are intangible and therefore will need the expertise of a policy analyst to determine.
Moreover, the policy analysts better understand the power dynamics and politics around a project. Through that, the analyst is able to determine which projects is viable or likely to be funded by the authorities. They are able to determine people with interest and influence, and through stakeholder engagement bring them on board to support the project. In addition, there are governance issues that can significantly impact the success of a project, which are better dealt with by policy analysts.
Bright Simons believes the policy analyst is also better placed to utilize statistical models and research to optimize project selection and execution.
Potential Benefits of the Joint Approach
Bright Simons is convinced that a collaboration between project managers and policy analysts can significantly minimize the excessive cost overruns associated with state projects in Ghana. A collaboration will ensure budgets are realistic, comprehensive, and closely monitored. This will help projects to be executed within financial constraints, preventing unnecessary expenditures and financial mismanagement.
Time overruns can also be dealt with through this approach. Delays in public projects often lead to increased costs and reduced efficiency. However, with proper project management and policy evaluation, timelines can be strictly adhered to, ensuring timely delivery of essential infrastructure and services.
Such a comprehensive approach can also help to minimize the abandoned projects canker and enhance transparency and accountability in public spending. By minimizing corruption and ensuring that resources are allocated efficiently, the government can build greater trust among citizens while maximizing the value of taxpayer money.
This strategy to state projects, Bright Simons adds, can ensure improvement in public services. Schools, hospitals, roads, and other infrastructure projects can be tailored to better meet the actual needs of citizens. By aligning policy goals with effective project execution, public investments become more impactful and beneficial to the population.
What Next?
The Project Management Institute Ghana (PMI-Ghana Chapter) is a budding professional body. Bright Simons urges them to consciously deploy strategies to make their voices heard on national issues relating to their field. He also urged them to seek more collaboration with policy analysts on projects and build their professional experiences.
This approach proposed by Bright Simons, if operationalized, will eliminate the era of wasteful spending and incomplete projects scattered across the country, sinking the country’s scarce resources. He argues that Ghana can save billions by fostering stronger collaboration between project managers and policy analysts, ensuring that every cedi spent leads to meaningful development. The country, he says, can create a future where infrastructure and policy are seamlessly aligned, driving sustainable growth.
