Roads Minister Promises GHS 12 Billion Payment to Contractors

Roads Minister Governs Kwame Agbodza has urged contractors to continue working on government projects. He assured them that outstanding payments will be made a priority. This move aims to keep road construction projects active across Ghana.

Mr. Agbodza acknowledged the financial difficulties contractors face. He stated that the government is committed to paying debts inherited from previous administrations. These inherited arrears amount to close to GHS 40 billion. This figure includes interest on delayed payments.

The minister revealed that the government has already paid over GHS 12 billion to contractors. He described this as the largest payment for the road sector made by any government in a single period. This significant disbursement aims to address the substantial backlog and ensure project continuity.

Mr. Agbodza praised contractors who continued working despite payment delays. He stressed their crucial role in maintaining road networks. These networks are vital for connecting communities and supporting local economies. He urged them to "Keep faith with the state. Keep working."

He assured that ongoing projects are being closely watched. Contractors who remain committed to their work will be prioritised. "We know where you are working and we will prioritise paying you," he stated. This promise aims to build confidence and encourage continued effort.

However, Mr. Agbodza issued a warning to contractors who have stopped working. He stated that non-performing firms risk missing out on future government contracts. "Don’t even bother to come back for new jobs," he added. This caution signals a firmer stance on accountability.

This commitment to payment is part of a larger effort to ensure infrastructure development. The current administration inherited a significant debt in the road sector. Managing these arrears is key to unlocking new projects and economic growth. The GHS 12 billion payment represents a substantial portion of the inherited obligations.

The financial strain on contractors has often led to project delays and halt. This cycle impacts infrastructure quality and progress. By prioritising payments, the government seeks to break this cycle. It aims to improve the efficiency of public spending in the infrastructure sector.

The Roads and Highways Ministry plays a key role in Ghana's development agenda. Its projects support trade, reduce transportation costs, and improve living standards. The effective management of contractor payments is therefore critical to achieving these national goals.

The minister made these remarks during President John Dramani Mahama’s “Reset Tour” in the Eastern Region. This context highlights the government's focus on addressing key sector challenges.

The implications of these assurances are significant for the construction industry. It signals a potential improvement in cash flow for many firms. This can lead to the resumption of stalled projects and the commencement of new ones. The focus on rewarding commitment also aims to foster a more reliable contracting environment.