Minister for Roads and Highways, Governs Kwame Agbodza, has disclosed that the Nana Addo administration left behind a debt exceeding GHS 21 billion, posing a significant threat to the road sector. The Adaklu MP warned that the financial burden not only hampers the ministry’s ability to sustain ongoing projects but also severely limits the initiation of new infrastructure developments.
Answering questions from Members of Parliament for the first time since assuming office, Mr. Agbodza provided a detailed breakdown of the debt:
• Consolidated Fund Projects: GHS 15.3 billion
• Ghana Road Fund Projects: GHS 5.66 billion
“These pending debts cover payment certificates from 2018 to 2024,” the minister stated. “It is worth noting that these debts do not include interest accrued on delayed payments. As recorded, the interest on some delayed payments can go as high as 50% or even 100%.”
He further revealed that in November 2019, the government borrowed GHS 1.2 billion from syndicated banks to finance road maintenance. However, despite this intervention, the Ghana Road Fund still owes contractors, some with outstanding bills as low as GHS 2,000, dating back to 2018.
“As of December 2024, the total outstanding commitments in the road sector, representing unexecuted contracts, stood at GHS 103.5 billion,” Mr. Agbodza told Parliament. “This figure excludes cost adjustments for variations in contracts, which are yet to be agreed upon.”
The minister lamented the financial mismanagement that has worsened the sector’s challenges, blaming it on contracts awarded without sufficient financial planning. “Many of these projects lacked the mandatory commencement warrants, as stipulated by the Public Financial Management Act,” he explained.
Despite the dire financial situation, Mr. Agbodza assured Parliament that efforts would be made to clear the debt as and when funds become available. “We are committed to restoring stability in the road sector, but it will take time and careful financial planning to overcome this burden,” he stated.
