The Roads and Highways Minister-designate, Kwame Governs Agbodza, has raised concerns about a deepening financial crisis in Ghana’s road infrastructure sector, citing a mounting debt of GH₵15 billion and calling for urgent reforms to ensure financial sustainability.
Speaking during his vetting before Parliament’s Appointments Committee on Monday, January 20, 2025, Mr. Agbodza revealed that the government owes contractors approximately GH₵3 billion in certified payments, with accumulated arrears contributing to the worsening debt situation.
The Minister-designate highlighted the economic toll of delayed payments, noting the additional burden of accruing interest on outstanding debts, which has further destabilized the sector.
Providing an overview of the crisis, he pointed out that GH₵113 billion was allocated to road projects in 2018, with GH₵665 million set aside for interest payments. He described the current financing model as unsustainable, noting that contractors are forced to rely on high-interest loans to complete projects, only to face delayed reimbursements.
“This cannot continue. Contractors operating under these conditions are not only financially constrained but also demotivated,” Mr. Agbodza warned.
Mr. Agbodza outlined a series of proposed reforms aimed at improving the financial stability and operational efficiency of the sector. These include optimizing the overleveraged Road Fund and fostering greater collaboration among contractors, auditors, and government agencies to enhance transparency and ensure efficient resource allocation.
“It’s imperative to align expenditure with actual revenue. Overcommitting funds erodes confidence and disrupts progress,” he stressed, advocating for a strategic focus on fewer, high-impact projects rather than spreading resources thinly across numerous initiatives.
Touching on the political dynamics of road project allocations, Mr. Agbodza called for bipartisan cooperation, emphasizing that infrastructure development is a shared national responsibility.
“This is not about NDC or NPP. Roads impact all communities, and how we manage them demonstrates our collective commitment to national development,” he remarked.
He also proposed a reassessment of ongoing projects to ensure that resources are directed toward initiatives with the highest potential impact.
Reaffirming his commitment to building a sustainable and equitable road infrastructure sector, Mr. Agbodza emphasized the need to minimize financial waste while ensuring value for money.
“The partnership between government and contractors is critical, and we must ensure that every cedi spent delivers real value for Ghanaians,” he stated.
Source: www.kumasimail.com
