We’ll validate road sector indebtedness – Minister
The Ministry of Roads and Highways has initiated a validation process to determine the government’s actual indebtedness to road contractors.
To this end, the Minister, Kwame Agbodza has instructed officials from the Ministry, Department of Urban Roads, Department of Feeder Roads, Ghana Highways Authority, and the Road Fund to provide data on all Interim Payment Certificates (IPCs) in the system.
The Minister noted that the information available to him indicates that the current outstanding amount is estimated to be close to GHc40billion.
Mr Agbodza emphasized the need to verify this amount and work collaboratively with contractors, ministry staff, and consultants to resolve any outstanding debts and ensure sustainable implementation of 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.”
Kwame Agbodza made these statements when he engaged road contractors on Monday January 27, 2025 to introduce himself, share his vision and solicit their support in overcoming the challenges in the road sector.
The discussions focused on decapping the Road Fund, debt sustainability in the road sector, judicious use of scarce re- sources available to the Ministry, negotiation on payment of interest on delayed payments and the reintroduction of road tolls to generate more revenue to fund road projects.
National Dialogue on Road Financing
Kwame Agbodza noted that allocations by successive governments to the Roads Ministry do not correspond with the demands from the public for road infrastructure. He therefore indicated that in the coming days, the government will organise a national dialogue on “how we will fund roads in our country, from our own resources.”
“Because surely when you make a proposal that you need GHc16billion to carry out your activities and then GHc3billion is approved for you, obviously, what it means is that you can’t carry out many of the things you want to do,” he noted.
Contractors Concerns
Contractors present at the meeting raised concerns about delayed payments, bureaucratic bottlenecks, and the rising cost of construction materials. They, however, expressed optimism about the Minister’s proactive approach and his commitment to fostering a collaborative relationship with the private sector. The government’s renewed focus on road development is seen as a critical step toward achieving its broader agenda of resetting the country to improve the living standards for all Ghanaians.
