Roads Ministry audits debts owed contractors

The Ministry of Roads and Highways has initiated a validation process to determine the government's actual indebtedness to road contractors.

The Sector Minister, Kwame Governs Agbodza, instructed officials of the ministry, the Department of Urban Roads, the Department of Feeder Roads, the Ghana Highways Authority, and the Road Fund to provide data on all Interim Payment Certificates (IPCs) in the system.

The minister stated that the information available to him indicated that the current outstanding amount was estimated to be close to GH¢40 billion.

During a meeting with contractors last Monday, Mr Agbodza emphasised the need to verify the 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,” he said.

Context

Mr Agbodza engaged road contractors, one of the main stakeholders of the sector, at his office last Monday to introduce himself, share his vision and solicit their support in overcoming the challenges in the road sector.

The discussions focused on uncapping the Road Fund, debt sustainability in the road sector, judicious use of scarce resources 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. 

Road financing national dialogue

Mr Agbodza, who is also the Member of Parliament for Adaklu in the Volta Region, stated that allocations by successive governments to the Roads and Highways Ministry did not correspond with the demands from the public for road infrastructure.

He, therefore, indicated that in the coming days, the government would 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 GH¢16 billion to carry out your activities and then GH¢3 billion is approved for you, obviously, what it means is that you can’t carry out many of the things you want to do,” he said. 

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 towards achieving its broader agenda of resetting the country to improve the living standards for all Ghanaians.

Background

When he appeared before the Appointments Committee of Parliament on January 20, this year, Mr Agbodza said the past government left behind a GH¢135 billion debt in the road sector.

He said the amount comprised a GH¢100 billion commitment debt, GH¢20 billion for unpaid certificates for roads executed to be paid by the Government of Ghana (GoG), and GH¢15 billion certificates at the Road Fund.

“In 2018, the government was owing about GH¢113 million, and the interest on the GH¢113 million this year will be GH¢665 million,” Mr Agbodza said.