Government to pay GH¢4b of road contractors’ arrears in July – Minister

The Minister of Roads and Highways, Mr Kwame Governs Agbodza, Tuesday said the government will pay GH¢4 billion to road contractors by the end of July 2025, as part of the allocated GH¢13 billion arrears clearance for this year.

The payment was an assurance of the government’s commitment to restoring contractor confidence and resuming stalled projects to foster economic development, the Minister said at a press briefing in Accra.

The government owes suppliers and contractors an astounding GH¢67.5 billion, the Finance Minister, Dr Cassiel Ato Forson, disclosed during the presentation of the 2025 Budget.

Mr Agbodza stated that during the transition between the past government and the current administration, it was noted that the country faced a GH¢21 billion road sector debt crisis, causing contractors to halt work due to unpaid certificates dating back to 2018.

“Towards the end of this month, the Finance Minister will be taking steps to retire some of the debts owed to contractors so that they can go back to site and complete the work. On record, we are intending to pay some GH¢4 billion,” he said.

Mr Agbodza said the government fully recognised the frustration of the multi-ring public – transporters and drivers – for enduring very challenging roads across the country, which was worst outside Accra.

“If you were to consume yam today in Accra, it probably came from Yendi (Northern Region). I wish you know how the truck who brought the yam to Tema, especially if the person used the Eastern Corridor road in a rainy season. You will weep for that driver,” he stated.

“There is no doubt that we are not going to renege on our commitment to complete ongoing projects… We will continue to prioritise paying for road work done.”

Mr Agbodza also reaffirmed the government’s commitment to giving local contractors government’s projects, a move aimed at stimulating local economy growth and develop a vibrant construction industry.

He asked local contractors to make quality work their hallmark, as the government intended to provide more opportunities to them under the $10 billion “Big Push” initiative to enhance infrastructure development in the country.

Source: GNA

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