$400million spent, no operational hospitals – Mahama on Agenda 111 Project

President John Dramani Mahama has revealed that approximately $400 million was spent on the Agenda 111 hospital project under the previous administration without a single facility being fully operational.

Delivering his first State of the Nation Address (SONA) on Tuesday, February 27, 2025, President Mahama criticised the execution of the flagship healthcare initiative, which aimed to construct 111 hospitals nationwide to improve access to healthcare.

“It is worth disclosing that USD$400m has already been disbursed under the Agenda 111 project, yet not a single hospital under this gargantuan initiative is serving the people of Ghana,” he told Parliament.

President Mahama suggested that if resources had been managed efficiently, at least 22 hospitals could have been completed and made operational with the amount already spent.

Sinking fund ‘almost empty’

The President also raised concerns over Ghana’s Sinking Fund, which was created to help repay debts. Contrary to claims by the previous administration of leaving financial buffers, he disclosed that the fund currently holds only $64,000 and GH₵143,000.

“There have been claims that buffers were left for ongoing debt repayments in 2025. The reality, however, is stark. The Sinking Fund currently shows a balance of only $64,000 in the dollar account and GH₵143,000 in the Cedi account,” Mahama said.

He warned that Ghana faces significant economic challenges, with total debt servicing obligations over the next four years projected at GH₵280 billion, including GH₵150 billion in domestic debt and GH₵130 billion in external debt repayments.

“As a nation, we must acknowledge the scale of this crisis,” he emphasised, calling for fiscal discipline and economic restructuring to stabilise the economy.

Commitment to bondholders

Despite the economic difficulties, Mahama reassured bondholders that his government remains committed to honouring all financial obligations.

“Bondholders can rest assured that they will be paid up to the last pesewa,” he declared.

His reassurance comes amid growing concerns over Ghana’s financial stability and the impact of past debt restructuring measures on investors.

Energy sector in crisis

President Mahama further disclosed that the energy sector is struggling under a debt of GH₵70 billion, inherited from the previous administration.

“The past government left a debt of GH₵70 billion in the energy sector; agencies in the sector are struggling to stay afloat,” he said.

The revelations in Mahama’s address paint a dire picture of Ghana’s financial situation, sparking calls for urgent reforms and accountability in managing public funds.