The government, through the Ministry of Finance, is struggling to settle GH₵75 billion in arrears owed to contractors for approximately 10,000 ongoing road projects across the country.
Despite ongoing efforts to manage public sector finances effectively, these projects, which are collectively valued at GH₵135 billion, continue to face significant financial challenges.
The Ministry of Finance has so far disbursed GH₵60 billion to address outstanding payments, with GH₵10 billion of this amount paid just this year. However, a substantial portion of the arrears remains unsettled.
During a high-level expert panel discussion titled “Closing the Financing Gap in Road Infrastructure Development in Ghana,” Chief Director at the Ministry of Finance, Madam Eva Mends, highlighted the challenges in securing sustainable financing for road infrastructure development.
The event was organized by the Ghana Highway Authority in collaboration with the Ministry of Finance and the Ministry of Roads and Highways as part of the Authority’s 50th-anniversary celebrations.
Madam Mends pointed out that despite measures like the certificate of commencement policy and the Government Integrated Financial Management System (GIFMIS) to enhance financial management, some road projects were initiated without the Ministry’s knowledge or proper budgetary allocations.
“Ministry of Roads and Highways will go ahead and make a commitment, sign a contract. Most of the time, we are not even privy to the contract. And that’s something; a systemic issue we will need to address,” she remarked.
She also noted that many contracts lacked clear spending limits, allowing contractors to extend projects beyond the agreed budget, leading to delayed payments and accrued interest, which ultimately undermines value for money.
“There’s no way we can pay for all those projects in three years, even if we don’t award any contract this year. If we don’t award any contract for the next three years, we still will not be able to pay on time all the contracts that we currently have on our books,” she added.
Former Chief Executive Officer (CEO) of Stanbic Bank and the Paramount Chief of Pishigu, Naa Dr. Alhassan Andani, commended the government for acknowledging its limitations in financing all road projects.
He called for policy sustainability and payment prioritization to encourage private sector involvement in road infrastructure. Dr. Andani emphasized the importance of developing a master plan for classifying roads based on their viability to aid in prioritization and appropriate financing.
Meanwhile, Member of Parliament for Obuasi West, Mr. Kwaku Kwarteng, urged politicians and the media to manage public expectations regarding road projects, especially during election periods.