Government to Pay GH¢4 Billion to Settle Part of Road Contractor Arrears – Roads Minister

Minister for Roads and Highways, Kwame Governs Agbodza, has announced that the government plans to release GH¢4 billion this month to settle part of its outstanding debt to road contractors.

Addressing the media on Tuesday, July 8, the Minister revealed that the government currently owes contractors approximately GH¢21 billion. He attributed the widespread abandonment of road projects to the state’s failure to honour payments for completed works, some dating as far back as 2018.

“At the point of transition, it became clear that many contractors had left their project sites because they had executed work, raised certificates, but had not been paid. Some have waited years — borrowing funds to finance these projects, only to be left without reimbursement,” Mr. Agbodza explained.

He emphasized the significant financial burden this debt has created for contractors and how it has undermined progress in the road sector.

Despite the challenges, the Minister assured that the government is taking immediate steps to restore confidence and get contractors back to work. “As the President stated yesterday, the Finance Minister will begin processes later this month to clear part of the arrears. Specifically, we aim to pay GH¢4 billion out of the GH¢21 billion to facilitate the resumption of stalled projects,” he said.

The Roads Minister expressed optimism that this intervention will provide much-needed relief to contractors and accelerate the completion of critical infrastructure projects across the country.