Accra: The Minister for Roads and Highways, Mr. Kwame Governs Agbodza, announced that the government will disburse GHS4 billion to road contractors by the end of July 2025. This payment is part of a broader effort to clear GHS13 billion in arrears this year, aiming to restore confidence among contractors and restart stalled projects crucial for economic development.
According to Ghana News Agency, the government's total debt to suppliers and contractors stands at GHS67.5 billion, as revealed by Finance Minister Dr. Cassiel Ato Forson during the presentation of the 2025 Budget. Mr. Agbodza highlighted that the country faced a significant road sector debt crisis amounting to GHS21 billion during the transition between the previous and current administrations. This financial burden led to delays in project completion, with contractors halting work due to unpaid certificates dating back to 2018.
Mr. Agbodza reassured that the Finance Minister would soon address some of these debts, enabling contractors to resume work. 'Towards the end of this month, the Finance Minister will be taking steps to retire some of the debts owed to contractors so that they can go back to site and complete the work. On record, we are intending to pay some GHS4 billion,' he stated.
The minister acknowledged the difficulties faced by transporters and drivers due to poor road conditions, particularly outside Accra. He emphasized the importance of completing ongoing projects to alleviate these challenges. Mr. Agbodza also stressed the government's commitment to awarding projects to local contractors, supporting local economic growth and fostering a robust construction industry.
He urged local contractors to prioritize quality in their work, as the government plans to offer more opportunities through the US$10 billion 'Big Push' initiative, aimed at enhancing infrastructure development across the country.
