5th February 2025 5:00:00 AM
2 mins readThe Ministry of Roads and Highways has started a detailed review to confirm exactly how much money the government owes road contractors as the debt is estimated to be nearly GH¢40 billion. Kwame Governs Agbodza has instructed officials from the ministry, along with teams from the Urban Roads, Feeder Roads, Ghana Highways Authority, and Road Fund, to gather data on all pending payment certificates issued to contractors.
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This review aims to provide a clear picture of the government’s financial obligations in the road sector and guide future policies for better infrastructure management. “The information available to me indicates that the current outstanding amount is estimated to be close to GH¢40 billion,” Agbodza revealed.
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During a meeting with contractors last Monday, he emphasized the need to verify the figures and work closely with all stakeholders to settle debts and ensure that future road projects are well-planned and sustainable. “One of my main responsibilities is to work with you—contractors, my ministry’s staff, and consultants—to find out whether we actually owe that amount of money.
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If we do, how do we work together to resolve it? And going forward, how do we ensure that projects are sustainable?” he said. As the Member of Parliament for Adaklu, Agbodza used the meeting to introduce himself to contractors, explain his vision, and seek their cooperation in addressing challenges in the road sector.
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Discussions covered several key issues, including increasing funds for road construction, managing debt, using resources wisely, negotiating interest on delayed payments, and possibly bringing back road tolls to raise money for road projects. He pointed out that public expectations for better roads do not match the funds that the ministry receives from the government.
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“In the coming days, the government will organize a national discussion on how we can fund road construction with our own resources,” he announced. “For example, if you request GH¢16 billion to complete road projects but only GH¢3 billion is approved, it obviously means you won’t be able to do much,” he explained.
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Contractors at the meeting raised concerns about delayed payments, bureaucratic processes, and the rising cost of materials. However, they welcomed the minister’s commitment to working closely with the private sector. The government’s renewed focus on road development is seen as an important step in improving the country’s infrastructure and overall living conditions.
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During his vetting before Parliament’s Appointments Committee on January 20, Agbodza stated that the previous government left behind GH¢135 billion in road sector debt. He explained that this debt included GH¢100 billion for projects the government had committed to but not yet paid for, GH¢20 billion in unpaid certificates for completed projects, and GH¢15 billion in road fund certificates.
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“In 2018, the government owed about GH¢113 million, and the interest on that debt alone has grown to GH¢665 million this year,” he disclosed.
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