The Ministry of Roads and Highways, has initiated a comprehensive validation process to ascertain the government’s actual indebtedness to road contractors, currently estimated at nearly GH₵40 billion.
Kwame Governs Agbodza, has directed officials from the ministry, the Department of Urban Roads, the Department of Feeder Roads, the Ghana Highways Authority, and the Road Fund to compile data on all outstanding Interim Payment Certificates (IPCs) within the system.
The validation process is expected to bring clarity to the government’s financial obligations in the road sector and help shape policies for sustainable infrastructure development.
“The information available to me indicates that the current outstanding amount is estimated to be close to GH₵40 billion,” Mr Agbodza disclosed.
At a meeting with contractors last Monday, he stressed the importance of verifying the figures and working collaboratively with contractors, ministry staff, and consultants to clear outstanding debts and ensure the sustainability of future projects.
“One of my main responsibilities is to work with you—contractors, staff of my ministry and its agencies, and consultants—to find out whether we actually owe that amount of money. If we owe, how do we work together to resolve that? And going forward, how do we ensure that projects are sustainable?” he stated.
Mr Agbodza, who also serves as the Member of Parliament (MP) for Adaklu in the Volta Region, used the engagement to introduce himself to the contractors, share his vision, and seek their cooperation in addressing challenges in the road sector.
Key topics discussed included the uncapping of the Road Fund, ensuring debt sustainability, maximizing the use of limited resources, negotiating interest payments on delayed disbursements, and the potential reintroduction of road tolls to generate revenue for road projects.
He highlighted the mismatch between public expectations for road infrastructure and the financial allocations provided to the Roads and Highways Ministry by successive governments.
“In the coming days, the government will organize a national dialogue on how we will fund roads in our country, from our own resources,” he announced.
“Because surely, when you make a proposal that you need GH¢16 billion to carry out your activities and then GH¢3 billion is approved for you, obviously, what it means is that you can’t carry out many of the things you want to do,” he explained.
Contractors at the meeting voiced concerns about delayed payments, bureaucratic hurdles, and the increasing costs of construction materials. However, they welcomed the minister’s proactive approach and commitment to fostering a collaborative relationship with the private sector.
The government’s renewed focus on road development is seen as a crucial step in its broader agenda to improve living standards across the country.
During his appearance before the Appointments Committee of Parliament on January 20, Mr Agbodza disclosed that the previous administration had left behind a GH¢135 billion debt in the road sector.
He detailed that the debt comprised GH¢100 billion in commitment debt, GH¢20 billion in unpaid certificates for completed projects under the Government of Ghana (GoG), and GH¢15 billion in certificates at the Road Fund.
“In 2018, the government was owing about GH¢113 million, and the interest on the GH¢113 million this year will be GH¢665 million,” he revealed.