The Minister for Roads and Highways, Kwame Governs Agbodza, has announced that the government is preparing to make a substantial payment of GH¢4 billion this month to settle part of the outstanding debt owed to road contractors across the country.
Speaking at a press conference, the Minister said the payment forms part of efforts to clear a total debt stock of GH¢21 billion owed to contractors for completed and ongoing infrastructure projects.
“If you listened to His Excellency the President of the Republic yesterday, he indicated that towards the end of this month, the Finance Minister will be taking steps to retire some of the debt owed by contractors so that they can go back to the site and complete the work,” Mr. Agbodza stated.
He stressed that the decision to release GH¢4 billion marks one of the largest single payments to contractors in Ghana’s history and reflects the government’s commitment to completing stalled projects and initiating new ones.
“On record, we are intending to pay some GH¢4 billion towards retiring part of the GH¢21 billion from this month. I have no doubt that this will go down as one of the biggest payments at a particular time, showing our seriousness about paying down debt and creating fiscal space to start the new works we are talking about,” he revealed.
The Roads Minister noted that the government remains committed to addressing the infrastructural deficit and ensuring continuity in road projects that are crucial for economic development, job creation, and improved transportation across Ghana.
Mr. Agbodza expressed optimism that the payment would help restore confidence among contractors, boost the local construction industry, and fast-track the delivery of critical road infrastructure, especially in underserved areas.
The announcement comes amid growing concerns over the increasing number of abandoned road projects due to delayed payments, with contractors citing financial strain and rising material costs as key challenges.
The minister concluded by reiterating the government’s readiness to collaborate with the private sector and development partners to deliver quality infrastructure while maintaining fiscal discipline.
Source: Oyerepafmonline.com
