The World Bank cites fiscal controls imposed by the Ministry of Finance for significantly delaying the Greater Accra Resilient and Integrated Development (GARID) Project. This delay has led to the project's implementation performance being downgraded to "Moderately Unsatisfactory" in May 2026. The GARID Project, valued at $350 million, aims to address chronic flooding and improve urban resilience in Accra.
These delays stem from persistent funding constraints, despite the project being fully financed. The Ministry of Finance introduced a ceiling on project disbursements during 2025. It also temporarily swept GHS 13.8 million from the project's designated account, creating severe cash flow problems. This resulted in unpaid Interim Payment Certificates (IPCs), delayed payments to contractors, and slower execution of civil works.
The slowdown in the GARID Project impacts broader efforts to develop resilient infrastructure in Ghana's capital. Accra faces perennial challenges with flooding, highlighted by the devastating floods of June 29, which caused 12 fatalities. This situation underscores the critical need for effective flood management and underscores the importance of timely project execution. The government's fiscal measures, while intended for broader economic stability, have directly hindered progress on this vital initiative.
The World Bank's May 2026 implementation update directly stated, "The implementation of GARID has been significantly constrained by fiscal measures introduced by the Ministry of Finance during 2025." This statement highlights the direct link between government financial policies and project performance. The bank acknowledged some corrective actions by Ghana in early 2026, but noted these have not fully resolved the underlying issues.
Looking ahead, the project still faces short-term cash flow shortages despite having committed financing. The Project Coordination Unit needs approximately $40.8 million for 2026, but the Ministry of Finance has allocated only about $17.5 million, leaving a significant gap. The Ministry of Finance has indicated that additional fiscal space will be considered during the 2026 Mid-Year Budget Review. This will depend on overall budget conditions. Stakeholders will watch closely to see if the government can unblock these funding bottlenecks. Delays could lead to time-related cost overruns and further contractor claims, increasing the ultimate cost of the project.
Furthermore, a request for commitment authorization covering $79.8 million in civil works contracts remains pending approval. This delay will also impact future progress on critical infrastructure components. Government has signalled its intention to resume issuing commitment authorizations as fiscal space improves. The efficacy of these future commitments will determine the project's ability to achieve its flood mitigation goals for Accra. The ongoing liquidity issues pose a substantial risk to the project's successful completion and Ghana's efforts to enhance urban resilience.