Roads Minister-Designate warns of GH₵15billion debt crisis in infrastructure sector

The Roads and Highways Minister-designate, Kwame Governs Agbodza, has raised alarm over a deepening financial crisis within Ghana’s road infrastructure sector, calling for urgent reforms to address mounting debts and unsustainable financial practices.

During his vetting before Parliament’s Appointments Committee on Monday, January 20, 2025, Mr Agbodza claimed that the government owes contractors approximately GH₵3 billion in certified payments, with accumulated arrears climbing to GH₵15 billion.

He highlighted the economic burden caused by delayed payments and the growing interest on these debts, which continue to undermine the sector’s financial stability.

Escalating financial strain on contractors

Providing a detailed analysis of the challenges, Mr Agbodza noted that GH₵113 billion was allocated to road projects in 2018, alongside an additional GH₵665 million in interest payments. 

He described the current financing model as unsustainable, pointing out that contractors are often forced to take on high-interest loans to complete projects, only to face delayed payments that worsen their financial difficulties.

“This cannot continue. Contractors delivering projects under such conditions are not only financially constrained but also disincentivised,” he warned.

Call for financial reforms

The Minister-designate outlined a vision for overhauling the sector’s financial framework, proposing the optimisation of the overleveraged Road Fund and advocating for a more collaborative approach involving contractors, auditors, and government agencies to improve efficiency and transparency in resource allocation.

“It’s essential to align expenditure with actual revenue. Overcommitting funds undermines confidence and derails progress,” he stated, emphasising the need to prioritise fewer, high-impact projects rather than dispersing resources across numerous initiatives.

Mr Agbodza also addressed the political aspects of road project allocations, urging collaboration across political divides.

“This is not an NDC or NPP issue. Road projects affect all communities, and how we manage them reflects our collective commitment to national development,” he remarked.

He called for greater unity and pragmatism in the sector, suggesting a reassessment of ongoing projects to ensure a more strategic allocation of resources.

Reaffirming his commitment to building a sustainable and equitable road infrastructure sector, Mr Agbodza stressed the importance of minimising financial waste while ensuring value for money.

“The synergy between government and contractors is critical, and we must ensure that every cedi spent delivers real value for Ghanaians,” he stated.