A new report by the National Development Planning Commission (NDPC) has disclosed that many government development projects are plagued by severe delays, escalating costs, and poor execution, resulting in a major loss of value for money.
The 2024 Annual Progress Report revealed that several capital projects undertaken by Ministries, Departments, and Agencies (MDAs) have missed their completion deadlines by years.
According to the NDPC, weak economic performance—particularly slow GDP growth, high inflation, and exchange rate instability—has been a major cause of project delays and rising costs.
Data from the report show that the total cost of 17,993 capital projects increased from GHS 434.8 billion to GHS 505.1 billion, marking a GHS 70.3 billion overrun.
The Ministry of Roads and Highways accounted for more than half of all ongoing projects, with 9,616 road projects currently at different stages of completion.
“Many investment projects experienced major time overruns, extending far beyond their original schedules,” the report indicated, adding that “macroeconomic challenges such as inflation and exchange rate fluctuations have made project completion significantly more expensive.”
The Ministry of Works and Housing, Ministry of Defence, and Ministry of Energy were among the key sectors facing sharp cost increases. For instance, the Ministry of Defence saw its project costs surge from GHS 8 billion to GHS 55.6 billion—a more than sixfold jump in 2024.
Despite government efforts to improve project coordination and monitoring, implementation remains problematic. On average, Metropolitan, Municipal, and District Assemblies (MMDAs) achieved 89.6% of their annual action plans, yet only 73.4% of the planned activities were completed.
The Commission cautioned that recurring delays and cost overruns waste public resources and undermine socio-economic progress. It, therefore, urged stricter enforcement of project timelines, greater transparency in procurement, and stronger financial planning to ensure that public projects achieve their intended goals.
