The government, through the Ministry of Finance, is still grappling with the settlement of GH₵75 billion in arrears for approximately 10,000 ongoing road projects across the country.
These projects, collectively valued at GH₵135 billion, have faced significant financial challenges, despite efforts to manage public sector finances effectively.
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.
Chief Director at the Ministry of Finance, Madam Eva Mends, highlighted these challenges during a high-level expert panel discussion themed “Closing the Financing Gap in Road Infrastructure Development in Ghana.”
The event, organized by the Ghana Highway Authority in collaboration with the Ministry of Finance and the Ministry of Roads and Highways, was part of the activities marking the Authority’s 50th anniversary.
The event sought to tackle the ongoing difficulties in securing sustainable financing for road infrastructure development and maintenance.
Madam Mends revealed that despite implementing 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,” Madam Mends remarked.
She further observed that many contracts lacked clear spending limits, enabling contractors to extend projects beyond the agreed budget, which has led to delayed payments and accrued interest, undermining 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 the road projects and called for policy sustainability and payment prioritization to encourage private sector involvement in road infrastructure.
Dr. Andani also emphasized the importance of developing a master plan for classifying roads based on their viability to aid in prioritization and appropriate financing. These classifications, he suggested, should include social roads, which could be financed by citizens, financial roads that attract private sector interest, and economic roads with long-term benefits.
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.