20th January 2025 1:32:13 PM
2 mins readThe Roads and Highways Minister-designate, Governs Kwame Agbodza, has revealed worrying financial obligations tied to road infrastructure projects which has a significant strain on Ghana's economy.During his vetting by Parliament’s Appointments Committee on Monday, January 20, Agbodza disclosed that the previous government left behind a minimum of GH¢110 billion in commitments related to road construction.
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He further noted that GH¢20 billion of this sum represents unpaid certificates owed to contractors."The NPP government is leaving a minimum of GHC100bn commitment. What you should be worried about though is that, in that same document, they are saying that certificates unpaid as of today from GoG amounts to about GHC20bn. The ones with road fund is about GHC15bn," he said.
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“At the transition committee as of today, the NPP government is leaving a minimum of GH¢113 billion commitments. What we should be worried about though is that in that same document, they are saying that certificate unpaid as of today from Government of Ghana amounts to about 20 billion and more worrying is that the interest on this GH¢113 is GH¢665m due to the nature of the contracts,” Agbodza revealed.
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He expressed deep concern over the financial burden posed by these obligations, particularly the GH¢665 million in accumulated interest payments, which he attributed to the terms of the contracts signed under the previous administration.The GH¢113 billion commitment represents a substantial portion of the national debt, placing additional strain on public finances.
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The unpaid certificates mean contractors face delays in receiving payments, which can stifle local businesses and disrupt economic activities.The GH¢665 million interest, he stressed, worsens the situation, diverting funds that could be used for other critical sectors such as education, healthcare, and social welfare
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